401k rollover one year rule
If a client rollover their 401k to an IRA can they take a withdrawal from the IRA and do a 60 day rollover, or do they need to wait one year for the IRA rollover?
Thanks,
Mark
If a client rollover their 401k to an IRA can they take a withdrawal from the IRA and do a 60 day rollover, or do they need to wait one year for the IRA rollover?
Thanks,
Mark
Permalink Submitted by Al Fry on Fri, 2009-01-09 20:20
The rollover from the 401(k) does not count toward the “one rollover per year” rule. It is best to have the rollover from the 401(k) to be a trustee-to-trustee transfer, to avoid tax withholding. Of course it is also aviseable to use the same with the IRA, so as to not later run afoul of the one per year rollover rule.