60 Day 401k Rollover to multiple IRAs
Can somebody take a 401k distribution and put some of the distribution into multiple IRAs? If so, can one of the IRAs be a traditional IRA and the other be a Roth IRA?
Can somebody take a 401k distribution and put some of the distribution into multiple IRAs? If so, can one of the IRAs be a traditional IRA and the other be a Roth IRA?
Permalink Submitted by Alan - IRA critic on Fri, 2022-03-25 17:57
Yes, you can do rollovers to multiple separate amounts. There is no one rollover per 12 months limit for distributions from a 401k, or for a single distribution which you then want to roll to different IRA accounts including a Roth IRA. However, if you receive a distribution payable to yourself instead of a direct rollover, there will be mandatory 20% withholding which you will need to replace with other money to complete the rollovers. Your plan may have a limit on how many direct rollovers they will do that would enable you to avoid 20% withholding.
Permalink Submitted by David Childs on Fri, 2022-03-25 18:08
The documents from the employer says they don’t withhold anything since they are just distributing the stocks, not the other investments in the account.
Permalink Submitted by Alan - IRA critic on Fri, 2022-03-25 21:39
That’s right. When I responded I did not link your name with the other post on NUA stock distributions, so thought this was a non stock distribution.