New limit on IRA rollovers

May 12, 2014 Written by

This was mentioned in a previous post but it’s worth repeating.

For years, the IRS interpreted the IRA rules to allow taxpayers to do one rollover per year in each IRA he or she owned. In doing a rollover, the taxpayer is not taxed on the funds taken from the IRA so long as the funds are redeposited into an IRA within 60 days of the withdrawal.

A recent court ruling stated that the rollover limit should be applied on an aggregate basis, meaning that only one rollover per year is allowed for all IRAs owned by the taxpayer, not one for each. The change becomes effective January 1, 2015.

Contact us for assistance before planning any IRA rollover to be sure you don’t end up with a tax surprise.



Written by: Doug Rodrigues