Rollover
Retired beginning of this year. Am over 70. Transferred my 401k funds into a traditional IRA. This was a direct transfer. Is this considered my once a year allowed rollover, or can I roll my funds in the traditional IRA into ANOTHER traditional IRA with another brokerage account without incurring a penalty of any kind? Thank you in advance.
Permalink Submitted by Alan - IRA critic on Fri, 2022-05-06 23:56
What you did was a direct rollover. These are not subject to the rollover limit because they originate from a plan that is not an IRA. But if you take an IRA distribution and do a 60 day rollover to another IRA, that will use up your one permissible rollover over a 12 month period. You should save that rollover for emergencies. If you want to move your IRA funds to a different custodian, you should do it by a direct transfer. These are not reported on a 1099R, you do not have to report them on your tax return, and you can do an unlimited number of direct transfers. You can originate a transfer through the new IRA custodian.
Permalink Submitted by Shulamit Rymberg on Sat, 2022-05-07 21:05
Thank you for your quick response.