Multiple 401(k) Rollovers in One Year
I know there are rules allowing only one IRA rollover in a 12-month period. What about 401(k) rollovers?
Can I rollover funds from a 401(k) plan to an IRA more than once in the same year without incurring any tax penalties?
Here’s the backstory – I quit my job some months ago, then subsequently completed a direct rollover of my previous employer’s 401(k) plan into an IRA. I just now got a notice that my ex-employer deposited new bonus funds into my old 401(k) (that I had already rolled all the funds out of). Since I already rolled over this plan into my IRA, can I do it a second time with the bonus that was just deposited?
Permalink Submitted by Alan - IRA critic on Sat, 2017-09-23 18:32
There is no limit on 401k to IRA rollovers, so you can roll over the remaining 401k balance anytime. However, if you started a 72t plan with the rollover IRA, you cannot roll the bonus money into that same IRA account or you will bust the 72t plan.