60 Day Rollover Question
Hello,
I have a client the has SEP IRA and would like to take a distribution from it and rollover $10k to the non-prototype cash balance pension plan. The goal is to roll the funds back within 60 business days. Their is a third party doing the tax reporting on the cash balance plan. My custodian is saying this there is no issue moving the funds from the SEP IRA to the cash balance pension plan. Could I get your thoughts on this?
Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2024-09-09 14:39
It is allowed as long as the cash balance plan will accept IRA rollovers. Client must include an explanatory statement about this rollover with their tax return because a cash balance plan will not issue a 5498 reporting the rollover contribution. A 5498 is only issued by IRA custodians.