Trustee to Trustee Transfer Withdraw 60 Rollover
If a person does a Trustee to Trustee IRA Transfer and wants to take money from the new IRA he just transferred to. Is there a restriction on when he can take money out and still use the 60 day rollover rule?
Permalink Submitted by mk foss on Tue, 2011-02-08 18:55
The trustee to trustee transfer does not invoke the 60 day rollover. If someone were to withdraw funds from the transferee IRA they would have 60 days from the date of withdrawal to replace the funds and avoid tax.
Permalink Submitted by Alan Spross on Tue, 2011-02-08 18:59
No restriction in this case because the intial direct transfer does not count against the one rollover limitation. However, if had been doing indirect rollovers in an IRA prior to transferring it to a new IRA, the rules are not clear that he can wipe the slate clean by doing this transfer. If there are no prior indirect rollovers in the last 12 months, he can certainly do one right away from the new IRA, but that will start a new 12 month waiting period before he can do another indirect rollover.