Indirect Rollover Details
Hi, I have a client who read Eds article: 60-DAY ROLLOVERS AND MULTIPLE CHECKS and is very concerned about his indirect rollover due to the Rule from his mutual fund company that caused multiple checks to be issued on different days because of their policy to only liquidate $125,000.00 per day on a phone liquidation. The account was well over 300k and took three days to liquidate by phone. Does the client have a problem now?
Thanks,
Will
Permalink Submitted by Alan - IRA critic on Wed, 2019-03-13 18:11
Maybe. The one rollover is based on the distributions, so if these are deemed separate distributions he was only eligible to roll over one of them. However, if he requested these distributions on the same day and to be done on the same day, and just ended up getting 3 checks due to the reason you cited, he would probably be justified taking the position that this was a single distribution. Different dates for the rollover contributions are immaterial to this problem. Did another firm accept all 3 checks as a rollover contribution without raising this question? Of course, IRA funds should be moved by direct non reportable transfer, not by 60 day rollover because of these exact problems. FInally, were these checks from the same mutual fund IRA account or different IRA accounts?