Application of One- Per- Year Limit on IRA Rollovers Announcement 2014-32

AuthorSeymour Goldberg
ProfessionSenior partner in the law firm of Goldberg & Goldberg, P.C., Woodbury, New York
2014- 32
This announcement is a follow- up to Announcement 2014- 15, 2014- 16
I.R.B. 973, addressing the application to Individual Retirement Accounts
and Individual Retirement Annuities (collectively, “IRAs”) of the one-
rollover- per- year limitation of § 408(d)(3)(B) of the Internal Reve-
nue Code.
Section 408(d)(3)(A)(i) provides generally that any amount distrib-
uted from an IRA will not be included in the gross income of the dis-
tributee to the extent the amount is paid into an IRA for the benefit of
the distributee no later than 60 days after the distributee receives the
distribution (often referred to as a “60- day rollover”). Section 408(d)(3)
(B) provides that an individual is permitted to make only one nontaxable
60- day rollover between IRAs in any 1- year period. As discussed in An-
nouncement 2014- 15, Proposed Regulation § 1.408- 4(b)(4)(ii) and IRS
Publication 590, Individual Retirement Arrangements (IRAs), provided that
the one- rollover- per- year limitation was applied on an IRA- by- IRA basis.
However, the Tax Court in Bobrow v. Commissioner, T.C. Memo. 2014- 21,
held that the limitation applies on an aggregate basis, meaning that an
individual could not make more than one nontaxable 60- day rollover
within each 1- year period even if the rollovers involved different IRAs.
In Announcement 2014- 15, the IRS indicated that it anticipated follow-
ing the interpretation of § 408(d)(3)(B) in Bobrow, and accordingly that
it would withdraw the proposed regulation and revise Publication 590 to
the extent needed to follow that interpretation, but that it would not ap-

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