60 day rollover question

Submitted by Robert Wright on Thu, 2010-09-30 18:23

Scenario:

Person owns TIRA account A. All pre-tax dollars.

Person does an indirect rollover from TITA A to TIRA account B. [TIRA A was closed and a check was made payable to account owner. Account owner deposited the check for the proceeds from TIRA A into their personal checking account and then wrote a check to establish TIRA B].

Question:

Would a custodian-to-custodian transfer from TIRA B to a 401k plan violate the 60- day rollover rule?
I would close TIRA B by having the TIRA B custodian make the check payable to the custodian of the 401k plan FBO participant.

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Permalink Submitted by Alan Spross on Thu, 2010-09-30 18:32

The transfer to the 401k would not be an indirect rollover, so there is no 60 day period. Also, do not be concerned with the one rollover rule per 12 months because a transfer or even a rollover to an employer plan does not count for purposes of the one rollover limit for 12 months.

Was the rollover from A to B done within 60 days?

Permalink Submitted by Robert Wright on Thu, 2010-09-30 19:01

Alan,
Yes, the rollover from A to B was completed within 60 days.

Thanks, as always, for your help.