Old Company 401K > Rollover IRA > Direct Transfer to IRA

Submitted by Kevin WOlter on Sun, 2020-05-24 18:48

-Step#1: Took 401K from past employer and rolled over into a TD Ameritrade Rollover IRA account.

-Step #2: Then took half the funds from this new TD Rollover IRA and did a direct transfer to Self Directed IRA account.

-Result: Now have half the funds in original TD Rollover IRA and half the funds are in this new Self Directed IRA account.

-Question #1: Is it okay that I now have these two IRA’s as explained above? Do they both remain tax-deferred as long as I do not withdraw early?

-Question #2: If I wanted to do another direct transfer of the remaining amount from the TD IRA to the new Self Directed IRA is that okay or are there limits on the amounts and/or number of these direct IRA to IRA transfers I can make?

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Permalink Submitted by Alan - IRA critic on Sun, 2020-05-24 20:48

Yes, no problem with this.
There is no limit to the number or dollar amount of non reportable direct transfers. They should not generate either a 1099R or a Form 5498. The first transaction was a direct rollover and these are also unlimited. An IRA distribution paid to you after which you do a 60 day rollover to another IRA or back to the same IRA is limited to just one over a 12 month period of time. Roth conversions are also unlimited in number whether you do them by direct transfer or 60 day rollover.