Re: Waiting period between rollovers?

On Mar 29, 4:52 am, "Phil Marti" <prm20...@xxxxxxxxxxx> wrote:
Note that even if the money had come payable to you and
then you deposited it in an IRA, it still wouldn't be an IRA rollover,
because the money came from a plan, not another IRA.

Thanks for all your inputs. They are helpful.

One correction, though: while that obviously is not an IRA-to-IRA
rollover, I believe it __is__ considered a rollover.

Under "Kinds of rollovers to a traditional IRA" on page 23, Pub 590
states: "You can roll over amounts from the following plans into a
traditional IRA: a traditional IRA; an employer's qualified
retirement plan for its employees; a deferred compensation plan of a
state or local government (section 457 plan); or a tax-sheltered
annuity plan (section 403 plan)".

As you have established (and I confirmed with Pub 590), a trustee-to-
trustee transfer (aka "direct transfer") is not consider to be a
rollover. Ergo, it is not subject to the 1-year waiting period,
whether it be a plan-to-IRA transfer or IRA-to-IRA transfer. And that
sufficiently addesses the facts in my circumstances.

(By the way, the fact that that is "not a rollover" was a surprise to
me because at least in the vernacular, I know that some plan
administrators, like Fidelity, do use the term "rollover" in that
case.)

But it still begs the question of whether a plan-to-IRA rollover per
se -- i.e. a check written in the name of the IRA owner and subject to
20% withholding -- is subject to the 1-year waiting period. (I always
called that a distribution. It becomes a rollover only if it is
deposited into a qualified plan within 60 days.) As I mentioned
before, neither Pub 575 nor Pub 590 says it is. But also neither
explicitly says it isn't -- at least, nowhere that I have seen so far.

Nonetheless, I don't doubt that you are correct in saying that even in
that case, there is no 1-year waiting period. The rational you gave
for the 1-year waiting period -- discouraging short-term "loans", as
it were -- applies to IRA-to-IRA rollovers, but not so easily to plan-
to-IRA rollovers.

Thanks again. This has been helpful.

.

Relevant Pages

  • Re: Waiting period between rollovers?
    ... then you deposited it in an IRA, it still wouldn't be an IRA rollover, ... because the money came from a plan, ... IRA-IRA rollover, which means it doesn't count against the one rollover per ... have to trust that if the rollover from an employer plan counted they'd tell ...
    (misc.taxes)
  • Re: ALERT: Change in Rollover expiration
    ... Prior terms and conditions would apply to Rollover minutes accumulated while ... Rollover Minutes accumulate and expire through 12 ... Bill Period 1 unused Anytime ... >> DEFAULT OR IF CUSTOMER CHANGES TO A NON-ROLLOVER PLAN. ...
    (alt.cellular.cingular)
  • Re: ALERT: Change in Rollover expiration
    ... They are as you say prior language, and applied to prior plan changes, not the current language which would apply to current and until further notice changes. ... Rollover Minutes: Rollover Minutes accumulate and expire through 12 rolling bill periods. ... Bill Period 1 unused Anytime Minutes will not carry over. ... Rollover Minutes accumulated starting with Bill Period 2 will expire each bill period as they reach a 12 bill period age. ...
    (alt.cellular.cingular)
  • Re: Cingular just lowered the bar
    ... my son had an AT&T account which became Cingular. ... now has over 14,000 'rollover' minutes and, when I called to ask if we could ... reduce his plan to fewer minutes until he used up some of the 'rollover' ...
    (alt.cellular.verizon)
  • Re: Unexpected 401(k) Distribution
    ... totally untaxable event. ... So it is too late to do a direct rollover. ... investment broker or a bank. ... Traditional IRA (or maybe a Roth IRA if this is considered after-tax ...
    (misc.taxes)