Re: Waiting period between rollovers?

<nomail1983@xxxxxxxxxxx> wrote:

If funds are rolled over from a qualified pension plan to a
traditional IRA (IRA-1), is there a minimum waiting period
before we can roll over funds from IRA-1 to another
traditional IRA (IRA-2)?

No. The plan-to-IRA transfer doesn't count as an IRA rollover.

<snip>

Pub 590 (p. 24) says that a waiting period does apply to
funds rolled over from IRA-1 to IRA-2. That is, if funds are
rolled over from IRA-1 to IRA-2, we cannot do subsequent
rollovers from either IRA-1 or IRA-2 "within 1 year of the
distribution" (the language used in the example).

Remember that there's no limit on direct custodian-custodian transfers. The
12 month restriction on rollovers applies only if you take possession of the
funds.

Since I do not understand the rationale for the waiting
period for IRA-to-IRA rollovers,

It's to keep you from. in essence, using the IRA for short-term loans

--
Phil Marti
Clarksburg, MD


.

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