IRA Rollover Limitation

In the old days, you could rollover your IRA assets as often as you wanted to. Those days are long gone and some IRA owners forget about the new limitation that went into effect last year.

Beginning in 2015, rollovers among IRAs became limited to ONE rollover per year regardless of how many IRAs you have. According to IRS Announcements 2014-15 and 2014-32, this rule does not apply to Roth conversions nor does it apply to a rollover from a qualified plan (such as a 401(k)) to an IRA.

Practice tip: Trustee-to-trustee transfers are still unlimited so whenever you move funds from one IRA to another, always do it via trustee-to-trustee transfer – this is not only a simple process but it will help you avoid violating this restrictive rule. A trustee-to-trustee transfer also eliminates the potential for missing the IRA 60-day rollover deadline!

More Updates

IMPORTANT TRUST DEADLINE APPROACHING

For trusts that inherited an IRA in 2019, an important deadline is approaching. The due date to provide required trust documentation to the IRA custodian to ensure that the longest payout period possible is available for the inherited IRA is October 31, 2020. Generally, only individuals who are named on an IRA beneficiary form can

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CRDS AND ROTH CONVERSIONS – ABUSE OF THE RULES?

The coronavirus-related distribution (CRD) rules for Roth conversions have a gaping hole. An “affected person” (as we have defined in previous blogs), is entitled under the CARES Act to withdraw up to $100,000 from their IRA or workplace retirement plan. A CRD avoids the 10% early distribution penalty for those under 59 1/2, can be

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Rolling Over an RMD

Like most people’s lives, the retirement world is upside down. This is made evident by a single statement: “Required minimum distributions (RMDs) can be rolled over.” Yes, that is the new normal—at least for this year. RMDs are considered the first money out of an IRA and workplace plan. Typically, these dollars are ineligible to

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