ROLLOVER - 12 Month Restriction

[jimfrombx]

My wife had an Ira (Traditional) and Roth at Capital One. They announced

they were getting out of the "IRA business" and were transferring all accounts to some company I never heard of. She went to Citibank

to get both accounts transferred there. Citibank would not let her

transfer the Roth to them because she did not have a Roth with them (??? Don't ask) so she closed it to do a Rollover. After 5 weeks Capital One claimed they never got the correct forms from Citibank so she closed the IRA because they were about to Transfer it to the other institution. I know you can only do 1 Rollover in any 12 month period, but because one is a Traditional and the other a Roth, does that rule NOT apply??


Jim

[Dusty2004]

You can do as many direct transfers per year as you would like.

[FEDUKE404]

These types of transfers (institution to institution) happen all the time. I've seen plenty of Forms 1099-R with the letter rollover codes.
If the accounts were "closed" then where did the funds go? AND the countdown clock was ticking. . .
Some part of this story is obviously missing. . .

[jimfrombx]

Sorry if I did not explain carefully. As she was unable to do a direct transfer (Bank to Bank) she had to take the funds herself to make the transfer.
She has deposited the check from the closed Traditional at COF into a Citibank IRA the next day. The check from the closed Roth at COF is
sitting in her checking account at her Bank. She still has about 30 days to do that Rollover. My question is will the IRS object to TWO Rollovers
in less than 12 months, or because they are Separate TYPES of IRA
is that OK.

[TAXNJ]

Consider reviewing TTB starting 29-2. “Rollover Chart”that may address your scenario.

Also see TTB 13-19 “ROLLOVER”

[FEDUKE404]

jimfrombx: A perhaps helpful reminder -- To keep the tax man at bay via a rollover scenario, if income taxes were withheld from the payout(s) then you will need to find additional funds to bring the net payout amount up to the gross distribution amount to create a complete rollover.

[New York Enrolled Agent]

Sorry if I did not explain carefully. As she was unable to do a direct transfer (Bank to Bank) she had to take the funds herself to make the transfer.
She has deposited the check from the closed Traditional at COF into a Citibank IRA the next day. The check from the closed Roth at COF is
sitting in her checking account at her Bank. She still has about 30 days to do that Rollover. My question is will the IRS object to TWO Rollovers
in less than 12 months, or because they are Separate TYPES of IRA
is that OK.

Good question - I think the once-a-year applies to all IRAs (traditional and Roth). Even though they are in different code sections, 408 and 408A , it appears the first subsection of IRC 408A prohibits the two rollovers. Others may disagree.

Code Sec. 408A. Roth IRAs

(a) General rule

Except as provided in this section, a Roth IRA shall be treated for purposes of this title in the same manner as an individual retirement plan.

[TAXNJ]

Additional information to consider reviewing (see link below):

https://finance.zacks.com/many-times-can-move-ira-account-year-5241.html