ira rollover
I have a client who moved her money from gm to fidelity investments in June. It is titled as a rollover IRA. She never touched the money. My question is if she wants to move this money does the 12 month IRA rollover rule apply
I have a client who moved her money from gm to fidelity investments in June. It is titled as a rollover IRA. She never touched the money. My question is if she wants to move this money does the 12 month IRA rollover rule apply
Permalink Submitted by Jose Morales on Mon, 2010-11-22 17:36
Whether the transaction was coded as a distribution and rollover or an IRA transfer isn’t determined by how the account is titled or whether the client touched the funds. How was the transaction initiated? Did the client go to the receiving IRA Custodian and complete a Transfer Request, which was then sent to the previous IRA Custodian? Did the client go directly to the previous IRA Custodian and complete a distribution form? Was the current IRA Custodian aware funds were being sent to them?
Permalink Submitted by Alan Spross on Mon, 2010-11-22 18:00
If these were employer plan funds that were distributed as a direct rollover (gm = General Motors?) to an IRA, that transfer does not count as a rollover for two reasons, first it was done by direct rollover and secondly, the funds did not originate from another IRA. If that is the case here, an indirect 60 day rollover can be done whenever client wants, and then the distribution date from the new rollover will start a 12 month clock until another indirect rollover can be done from the same IRA or from the IRA that received the current rollover.