Rollover of IRA after Age 70

[Burke]

I am getting conflicting and confusing information when trying to research this. TP is over 70 and has two traditional (qualified) IRA's. Can one be rolled into another to combine them? The larger one is an annuity with an insurance company; the other smaller one is a CD at a bank. Company reps are saying no, client is over 70.

[Rapid Robert]

There is no age restriction on rollovers. However, RMDs cannot be rolled over (maybe they are thinking of that). Also, I don't know what type of IRA custodian would be willing to hold both types of assets you describe. The CD, for example, is probably covered under standard banking rules such as FDIC, while the annuity is a very different thing, probably can't be held in a bank account.

[kathyc2]

Are they specifically saying the denial is based on age? I'm guessing it's more of a restriction of annuity not allowing additional amounts going into it.

[ttbtaxes]

I'm not aware of any restrictions (except the RMD) on a rollover of an IRA after age 70 1/2. Take a look at Rev. Rul. 82-153 which addresses the rollover of funds from a pension to a newly created rollover IRA. It stated, "Although A may neither claim a deduction for a contribution described in section 219 of the Code nor take a deduction for amounts rolled over into an IRA, nothing in the Code prohibits A from making a rollover contribution (and, thus, deferring taxation on the amounts rolled over) merely because A has attained age 70 1/2."

[Burke]

Are they specifically saying the denial is based on age? I'm guessing it's more of a restriction of annuity not allowing additional amounts going into it.

That is what I am thinking, but that is not what the customer rep said. She specifically said due to TP being over 70. (After checking with someone, whom I do not think understood the question.) The CD would be converted to cash and it may be that TP will have to surrender it himself. I was trying to facilitate a direct transfer. I need to read the annuity contract to determine if a rollover is prohibited. This does not involve an RMD. All the information I could find dealt with the rollover of 401K's or pension funds to an IRA. Not this particular situation. Also, the annuity was funded from yearly IRA contributions, not any pension funds.