60 day rollover
My understanding is individuals can now only do 1 60 day rollover per year no matter how many IRA’s, correct? If so, does the one year time frame start from the date the funds were received by individual when withdrawn like the 60 days to reinvest clock? Or does the clock for the one year start when the funds are put back in an IRA, presumably 60 days from when first received from distribution avoid penalty and taxes?
Permalink Submitted by Alan - IRA critic on Mon, 2016-04-11 21:21
The 12 month rollover clock starts ON THE day the distribution is received by the taxpayer. For example, if a distribution is received on 4/11, the next distribution to be rolled over cannot be received sooner than 4/11 of the following year. The date the rollover contribution is made is immaterial with respect to the one year limit. Note that the 60 day time limit to complete a rollover ends on the 60th DAY AFTER the distribution is received. No consistency there. The IRS has authority to extend the 60 day rollover time limit, but not to waive the 1 rollover per 12 month limit.