Re: Waiting period between rollovers?

On Mar 29, 12:01 am, "Phil Marti" <prm20...@xxxxxxxxxxx> wrote:
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.

No, I did not know that. Thanks for pointing that out.

Now that you mention, I do find this statement on page 23 of Pub 590:
"A transfer of funds in your traditional IRA from one trustee directly
to another [...] is not a rollover. [....] Because it is not a
rollover, it is not affect by the 1-year waiting period required
between rollovers".

FYI, I erred in my description of the events. I forgot that there
were __three__ transfers or rollovers of the funds. I do not think it
changes the answer. But just in case it might, the following are the
corrected facts.

1. Transfer of funds from the pension plan to a traditional IRA
(IRA-1). Some of the funds were transfered electronically. Some of
the funds were transfered by check to "Bank Name FBO Jane Doe". The
1099-R does use code G ("direct rollover to [...] an IRA"). However,
the 1099-R was written by the non-professional trustee of the pension
plan, not by an institution.

2. Transfer of funds from IRA-1 to another traditional IRA (IRA-2).
This was within 1 year (and within the same calendar year). This was
accomplished by a check to "Brokerage Name FBO Jane Doe".

3. Electronic transfer of funds from IRA-2 to another traditional IRA
(IRA-3). This was within 1 year (but in a different calendar year).

Transfer #2 is the transfer that I worry about. However, in a similar
situation, I was told by the distributing institution that this is
considered to be a direrct transfer because the check is in the name
of the trustee, not the account owner (Jane Doe).

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

Thanks. Makes good sense. And thanks again for point out the
distinction of the direct transfer from trustee to trustee.

.

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