60 day rule
Can an individual surrender an IRA annuity , take that check and deposit that check to their IRA Brokerage account and then……. within 60 days of receiving that check , request that those funds are transferred to another investment company ie. insurance company etc. out of the Brokerage IRA all done within 60 days of the client receiving the original check. Does this count as 1 transaction of a rollover and 1 transaction of a transfer , all ok. Or does this count as 2 transactions and not permitted ( only 1 allowed every 12 months ) Is this a clean transaction with no taxable consequence ? Thank you
Permalink Submitted by Alan Spross on Thu, 2009-02-05 21:17
This is OK. You have used up your one permitted rollover, but the direct trustee transfer out of the brokerage IRA does not count. The second check needs to be made out to the insurance company FBO taxpayer’s IRA and NOT to the taxpayer himself.
You would just report one distribution and rollover on line 15 of Form 1040.