Once-a-Year Rollover
If an individual has two separate 401(k)’s from two separate companies, can both be directly rolled over upon retirement within the same year, or must he wait another year to roll over the second one?
If an individual has two separate 401(k)’s from two separate companies, can both be directly rolled over upon retirement within the same year, or must he wait another year to roll over the second one?
Permalink Submitted by Alan - IRA critic on Mon, 2022-06-06 18:25
No need to wait. There is no one rollover limit for distributions from a 401k, and in addition a direct rollover should be used to eliminate the withholding requirement.
Permalink Submitted by Robert Goldsmith on Thu, 2022-06-09 21:01
If I want to move a pension as a lump sum, but the pension custodian will only send the entire balance to one account (broker or annuity). The new account says they can do a “distribution prior to issue” and send 1/2 of the funds back to the client,establish their account and send the second half back to the client. Can the client then deposit that amount into another IRA as a part of the 60day indirect transfer/rollover rule or is that violating the once per year rollover rule. ?”
Permalink Submitted by Alan - IRA critic on Thu, 2022-06-09 21:52
It isn’t clear what the new custodian is planning, but it sounds convoluted. Once the custodian receives the entire balance from the pension, either a direct transfer could be done to the second IRA without using up the one rollover permitted, or a distribution to the IRA owner could be made after which the IRA owner could do a 60 day rollover to the second IRA. But this latter transaction would use up the one rollover permitted between IRAs. Note that the original rollover from the pension to the IRA does not count as a rollover because it is not between two IRA accounts. It is from a qualified pension plan.