Roth IRA 60-day rollover
Client is making some changes to her retirement plans. She wishes to take a complete distribution from her Roth IRA Account she started 20 year ago and deposit the funds into her checking account. Within 60 days send 80% of her distribution to an insurance company where she has established a new Roth IRA annuity and with the balance of her distribution, open another Roth IRA account with an investment firm to purchase mutual funds. Do these actions violate any of the 60-day rollover rules? Look forward to reading comments from the members of the Discussion Forum.
Permalink Submitted by Alan - IRA critic on Sat, 2021-03-20 02:00
Client is allowed one 60 day rollover over a 12 month period. If client did not rollover a distribution in the 12 months before this, she can take this Roth distribution and roll it over to the two destination Roth accounts. Because rollovers are counted by the distribution and this will be a single distribution, she can roll it into different accounts. Once this is done, she will have to go through the next 12 months without another distribution she intends to roll over. Note that if these proposed rollovers were done by separate direct transfers, she would not have used any rollover because direct transfers are unlimited.