Re: Waiting period between rollovers?

<nomail1983@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.

A distinction without a difference, but I should have said it's not an
IRA-IRA rollover, which means it doesn't count against the one rollover per
12 months limit.

<snip>

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.

You are drawing an incorrect conclusion. As noted before, a rollover from
an employer plan into an IRA doesn't count against your rollover limit even
if it's not done as a direct transfer.

<snip>

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.

The closest thing you'll find is the explicit reference at the top of column
2 of page 27 of Pub 590, which says that the 12 month limit doesn't apply to
rollovers from employer plans.

You then have to put that together with the fact that the only mention
anywhere of the 12 month limit is with reference to IRA-IRA rollovers. You
have to trust that if the rollover from an employer plan counted they'd tell
you about it.

--
Phil Marti
Clarksburg, MD


.

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