once per 12 months day rollover

Client rolled over their 403b plan to IRA in Dec 2022. 403b check made payable to IRA FBO client name and deposited.
Client now wishes to withdraw portion of funds from IRA for short term need and return it to the IRA within 60 days. Other than the 401k rollover to the IRA they have not done any other rollovers in the past 12 months

Does the 401k rollover to the IRA count as a rollover for purposes of determining the once per twelve months rule?

If so I assume they cannot return the IRA distribution they now wish to take until 12 months has expired?

Thx
Howard



The one rollover limit only applies to IRA to like kind IRA 60 day rollovers. Rollovers between employer plans and IRAs are exempt. Therefore, client is allowed to do one IRA to IRA 60 day rollover now, but will then have to wait 12 months before again qualifying for an IRA to IRA rollover. 



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