60 day rollover in same year as rollover directly from 401k
Client recently rolled over 401k directly to an IRA, from Plan Sponsor to new Custodian, check was not made to client. Client then decided he needed money from IRA, and is planning to put it back, using the 60 day rollover rule. Is this acceptable?
Permalink Submitted by Alan - IRA critic on Wed, 2014-05-28 15:22
Yes. Rollovers between IRAs and qualified plans do NOT count against the one rollover rule limitation, only for IRA to IRA rollovers. But the IRA rollover here means that for the next 12 months client cannot do another rollover from IRA to IRA. Starting 1/1/2015 only one rollover is allowed for all IRAs instead of per individual IRA account.