ONE ROLLOVER PER 12 MONTH IRA RULE
CAN A CLIENT WHO HAS AN IRA ACCOUNT AND A SEPARATE ROTH ACCOUNT ROLL OVER THESE FUNDS WITHIN 60 DAYS TO ANOTHER SEPARATE IRA AND ROTH ACCOUNT WITHOUT PENALTY WHEN THE CHECK IS MADE TO HIM AND HE ENDORSES IT OVER TO THE OTHER COMPANY
Permalink Submitted by Alan - IRA critic on Thu, 2020-03-05 14:43
No. A check payable to him would be a distribution reported on a 1099R, and client can only roll one such distribution in a 12 month period. This would be two distributions (one from TIRA, one from Roth), so only one of them could be rolled over, and the other one would be subject to possible tax and penalty. When moving IRAs between custodians, it should be done by direct transfer, as those are unlimited and not even reported on a 1099R. Client would generally have the new custodian order the transfers from the old custodian. NOTE: A conversion does not count as a rollover for these purposes, but I think in this case there is no conversion from TIRA to Roth, just a transfer of both accounts to a new custodian.