60-Day Rollover

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60-Day Rollover rule was part of the IRA rollover rules that have been clarified. Unfortunately, they are now more heavily restricted. The IRS limits one rollover from an IRA to another IRA in any 12-month period. The difference is that the limit will now apply by aggregating all IRAs, effectively treating them as one for purposes of the one rollover per 12-month period limit.

60-day rollover, rollover change, rollover rule

60-Day rollover change affects you how?

Basically, in the past, one could theoretically have multiple IRAs and take a distribution from one IRA to contribute to another IRA.  In this way, one could theoretically string out a 60-day rollover indefinitely as long as one had enough IRAs out there.  The change now restricts one 60-day rollover per 12 month period, per taxpayer. That being said, a married couple might be able to string out a 60-day rollover over 120 days if they timed it properly between each of their IRAs.

However, if you want a happy marriage, I would never ever drag my wife into such shenanigans. Maybe you should give Alex Franch, BS EA  at Worthtax a call the next time you have a question about an IRA rollover. He just might be able to save you a whole lot of grief.

For more information, call Alex Franch at 781.789.7200. WorthTax has locations in Norwell, Dedham, and Weymouth, Massachussetts.
Alex Franch

Mr. Franch is a Tax Specialist and Partner at Joseph Cahill & Associates / WorthTax. He has a diverse background including a Bachelor of Science from Boston College in Mathematics and extensive military service. Mr. Franch is an Enrolled Agent and has eight years of tax preparation experience. He has been serving individuals, families, and businesses for several years with tax and financial planning strategies and is a junior partner with the firm. Mr. Franch is licensed by the Financial Industry Regulatory Authority (FINRA) with a Series 6, 63, 65, and 7, and by the Commonwealth of Massachusetts Division of Insurance.

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