60 day rollover question
Client took a distribution from thrift savings plan and rolled over to IRA within 60 day window. They now want to do a 60 day rollover with the IRA. Does the 1 rollover per year apply here since the initial rollover was out of the 401k and pub 590 seems to indicate the 1 year waiting period is specific to IRA to IRA.
Permalink Submitted by Jose Morales on Tue, 2014-10-07 21:54
The 1 rollover per 12 months only applies to indirect IRA to IRA rollovers. A direct rollover from a qualified plan to an IRA does not count towards the 1 allowable rollover per 12 months.
Permalink Submitted by David Mertz on Tue, 2014-10-07 22:15
Nor does an indirect (within 60 days) rollover from a qualified plan count towards the one-rollover-per-12-months rule, as appears to be the case here.