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Ira Contributiion Limits

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    Ira Contributiion Limits

    You may make MORE than one DIRECT rollover or transfer from one IRA trustee to another IRA
    trustee per year BUT if you make more than one INDIRECT IRA rollover per year, the second and
    all subsequent rollovers that year from the SAME IRA will be TAXABLE.
    An INDIRECT rolllover is when the taxpayer obtains a payment from the IRA trustee and
    within 60 days rolls the IRA himself into another IRA. In most cases an indirect rollover will have
    federal tax withheld. This means that the taxpayer must find other funds to replace the federal tax
    withheld so he can rollover the gross amount.
    If he only rolled over the cash he received, he would have a PARTIAL rollover and any amount NOT
    rolled over would be taxable and subject to the 10% penalty if he was less than 59 1/2 years old
    or if he could not claim one of the exceptions to the penalty. We NEED to WATCH for 1099-R forms
    which report federal tax withheld and the taxpayers claim that this was rolled over. Am I understanding
    this correctly?

    #2
    yes

    Originally posted by dyne View Post
    You may make MORE than one DIRECT rollover or transfer from one IRA trustee to another IRA
    trustee per year BUT if you make more than one INDIRECT IRA rollover per year, the second and
    all subsequent rollovers that year from the SAME IRA will be TAXABLE.
    An INDIRECT rolllover is when the taxpayer obtains a payment from the IRA trustee and
    within 60 days rolls the IRA himself into another IRA. In most cases an indirect rollover will have
    federal tax withheld. This means that the taxpayer must find other funds to replace the federal tax
    withheld so he can rollover the gross amount.
    If he only rolled over the cash he received, he would have a PARTIAL rollover and any amount NOT
    rolled over would be taxable and subject to the 10% penalty if he was less than 59 1/2 years old
    or if he could not claim one of the exceptions to the penalty. We NEED to WATCH for 1099-R forms
    which report federal tax withheld and the taxpayers claim that this was rolled over. Am I understanding
    this correctly?
    you are indeed
    Just because I look dumb does not mean I am not.

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