One Rollover Per Year per taxpayer?
Can my client do a 60 day rollover from her IRA, and then, within 365 days do a 60 day rollover from her Roth?
Can my client do a 60 day rollover from her IRA, and then, within 365 days do a 60 day rollover from her Roth?
Permalink Submitted by Alan - IRA critic on Tue, 2024-09-03 16:26
Yes, as long as over 365 days have passed between those two distributions. That said, client should avoid 60 day rollovers wherever possible and move funds by direct transfer. Direct transfers are unlimited in number, are not reported on a 1099R or 5498, and not reported on client’s tax return, so they are much more efficient. Such transfers should be initiated through the new custodian.
60 day rollovers should be left for emergency needs as they lock the client out for an entire year from doing a later rollover.