Rollover vs Transfer
Person has a 401(k) plan and must rollover plan assets.
By mistake, they rollover to an TIRA with the plan’s brokerage firm. They want to “fix” this mistake by transferring the new TIRA to their correct brokerage firm. To complicate further, they still have a portion of funds left in the 401(k) plan. This can be done, correct?
As of 2016, Is there a limit to TIRA transfers that can be done in a calendar year?
Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2016-02-02 20:50
The only limited transactions are IRA to IRA distributions that are rolled over. If a qualified plan is on either end of a rollover, the rollover does not count against the one rollover limitation per 12 months. The IRA to IRA rollover will count unless the funds are moved by direct transfer between the IRAs.