60 day rollover

Submitted by doug manfredonia on Tue, 2008-12-16 01:01

401K to IRA transfer for 100K is completed on 12/1/08. can client rollover 50K on 1/1/09 and then another 50K on 2/1/09 and have 2 different 60 day clocks?(one due 3/1 and the other 4/1). if not , then could a solution be to create a 2nd brokerage acct. ..say on 12/20…(in same institution) and do rollover for first 50K from original IRA, and then do the second 50K on 2/1, to buy extra time to replace the 2nd 50K. he is 35 y.o. and needs $ for home improvements. heloc dollars are becoming avail. about a month slower than construction is going.



Submitted by Alan Spross on Tue, 2008-12-16 04:55

Yes, that would work as long as the second IRA is split off from the original rollover IRA by direct transfer. There are then two separate IRA accounts that can each provide one 60 day rollover out and back.



Submitted by doug manfredonia on Tue, 2008-12-16 15:29

so you’re saying the first way would not be allowable, and the 2nd way would allow for 2 different 60 day “clocks” ???



Submitted by Jose Morales on Tue, 2008-12-16 16:30

I think Alan is suggesting that one of the transactions be done as an IRA to IRA transfer in order to avoid any conflice with the 1 rollover per 12 months rule. There is no restriction on the number of IRA to IRA transfers you can complete in any time period.



Submitted by Marcia Brill on Mon, 2008-12-22 00:06

Thanks for your response Alan,

This is really getting to me. Okay if I do it this way, my husband says taxes have to be paid so what is the advantage. The only other thing I can do is take the RMDs from the fund that is doing well and in a money market and leave the 2 other IRAs alone for now. I really think they will go nowhere but I don’t want to take a loss either. I keep hoping they will come up a little, but all they do is go down.

I appreciate your responses. What capacity are you in? Meanwhile one of my funds already took out the RMDs without telling me and took too much out. They are looking into it.

Any other suggestions?



Submitted by Alan Spross on Mon, 2008-12-22 02:39

I think the last post was to the wrong subject, so I copied it over to your original post on this subject and replied there……………..



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