What You Should Know About the One-Per-Year Limit on IRA Rollovers That You Don't Know

AuthorSeymour Goldberg
ProfessionSenior partner in the law firm of Goldberg & Goldberg, P.C., Woodbury, New York
Pages157-163
157
WHAT YOU SHOULD
KNOW ABOUT
THE ONE- PER-
YEAR LIMIT ON IRA
ROLLOVERS THAT YOU
DON’TKNOW
Practitioners must become aware of the tax- free IRA rollover rules that
are applicable as of January 1, 2015. This is necessary in order for prac-
titioners to protect their clients from major tax problems and penalties if
clients violate the new IRA rollover rules that start in 2015.
The following is a brief analysis of the old rules:
1. The IRS for many years indicated that if you have multiple IRAs,
it was permissible to do multiple IRA rollovers if you followed the
rules set out in IRS Publication 590.
2. The old rules as described in IRS Publication 590 stated the fol-
lowing:
Waiting period between rollovers. Generally, if you make a
tax- free rollover of any part of a distribution from a traditional
IRA, you cannot, within a one- year period, make a tax- free
rollover of any later distribution from that same IRA. You also
cannot make a tax- free rollover of any amount distributed,
within the same one- year period, from the IRA into which you
made the tax- free rollover. The one- year period begins on the
date you receive the IRA distribution, not on the date you roll
it over into an IRA.

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