Limit on direct IRA transfers in one calendar year
I made 2 direct transfers this year and am not sure if this is allowed.
Transfer 1: Source was a variable annuity funded initially from an IRA. I transferred all of the funds to a IRA rollover account directly.
Transfer 2: Source was a IRA at one institution. I transferred shares in a mutual fund within the IRA to a different institution directly.
Question: Does this run afoul of the rule that only 1 IRA transfer can be done within a calendar year? Technically I do not know if the variable annuity is considered an IRA even if initially funded by an IRA.
Question: If so, will I be able to reverse the second transfer if done within the same calendar year?
The IRA rules are so complex….
Thanks!
Permalink Submitted by Whodiini on Thu, 2023-11-30 05:09
In transfer 2, it was from one IRA to another IRA at a different institution. I wasnt clear in hte first post.
Permalink Submitted by Whodiini on Thu, 2023-11-30 05:19
After reading the IRS rules, I may have been too loose with the wording.Since I did not get any checks, I believe I did not do a rollover, I did two trustee-to-trustee IRA transfers and therefore do not fall under the IRA one-rollover-per year rule. Is that correct?
Permalink Submitted by David Mertz on Thu, 2023-11-30 12:41
Correct. You should not receive any Forms 1099-R or 5498 that report these transactions.