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?
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?
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