Ed Slott and Company, LLC |

 

Retirement Account Rollovers: Today's Slott Report Mailbag

Question: I read your November 29, 2017 explanation of rollovers and the time limitations. But my issue is still unclear to me. In December 2018, my husband made a transfer from his 401(k) to an IRA to a Roth IRA. We intended to do the same this year, but an unexpected bill hit us, and we took a distribution from the 401K two weeks ago. Taxes were taken out. The bill turned out to be much less than expected and so, we would like to roll over the distribution into his existing Roth account. Since the December one was a transfer and this one would be a 60 day rollover, is it permitted? And if so, can we do another transfer in a few months? Thank you in advance. Nina Answer: Hi Nina, You are wise to be concerned about the timing of your transactions, but you should be OK. The IRS has a “once-per-year rule” that limits anyone from making more than one IRA rollover in any 12-month period. (The 12-month period is not a calendar year.) Violating this rule could cause serious tax consequences. Read More

Consumers - We want your questions!

Email your questions to us at mailbag@irahelp.com. Selected questions will be featured every Thursday in the Slott Report.

What is an Elite IRA Advisor?

Ed Slott, CPA | Amer...

Why You Should Atten...

The Benefits of Work...

Ed Slott Explains Ho...

What Makes an Elite ...

Ed Slott gives his V...

 

Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.
 

I agree to the terms and services:

You may review the terms and conditions here.