Once a Year Rollover
For a Roth IRA Rollover, I ran into a snag on the distribution. The institution that holds my Roth imposes a daily limit on the movement of funds from one account to another. So, my distribution got spread over three consecutive days. All of the funds were re-deposited back in the same Roth IRA within 6o days. Would the distribution be considered one withdrawal or three withdrawals?
Permalink Submitted by Alan - IRA critic on Sun, 2024-10-27 16:37
You should be moving funds by direct transfers, as they are unlimited in number. That’s particularly true with this unusual custodian who limits distributions.
As to your question, there is a gray area if you requested only a single distribution and the custodian could only respond with 3 distributions. The one rollover rule is typically enforced by IRA custodians, so if they accepted the rollovers of all 3 distributions and because the distributions will be reported as a total on a single 1099R, you are probably all right.
But I would directly transfer the balance to another custodian who will not have these restrictions.