QDRO in two pieces
Client finishing up a divorce. Under the QDRO the spouses 401k was split and clients portion rolled into an IRA. The 401k custodian has now indicated they did not distribute the correct amount, and the client is due an additional $5,000. If this is also put in the IRA would it violate the Rollover Rule?
Permalink Submitted by Alan - IRA critic on Tue, 2015-12-22 18:10
No. The one rollover limit only applies to IRA to IRA rollovers. Therefore, neither of these two 401k to IRA rollovers would count even if done by indirect rollover. More likely the funds are being moved by direct rollovers. There is no problem with the second rollover here.