In Direct IRA Rollover and Direct Transfer in Same Year?
A person I work with was free looked $400K from his IRA with an insurance company in the amount of $400K. In February of 2013 they received the refund check of $400K. They sent $200K to a brokerage IRA and $200K to a SPIA via personal check. So an In-Direct rollover took place.
Now they would like to do a Direct Transfer of some of their funds to a new IRA. Does the IRS allow this transaction?
Thank you!
Permalink Submitted by Alan - IRA critic on Fri, 2013-12-20 19:29
A direct transfer can always be made without limitation.By the way, I hope the SPIA was in an IRA, otherwise that portion is not a rollover and would be taxable.
Permalink Submitted by steve harper on Fri, 2013-12-20 19:37
Yes the SPIA was an IRA. Thanks once again for your input. I was 99% sure of the answer but always like to check with THE Expert. I appreciate your help very much!!