Image of Home Logo

Related Resources

Personal Wealth Services

IRA Rollovers Limited

Saul Brenner, CPA, J.D., LL.M. 06.18.2014 | eVisor

Personal Wealth

The IRS has decided to follow a recent Tax Court decision 1 that settled the question of a limitation on rolling over IRAs. The bottom line for taxpayers is that you are limited to one rollover per year.2

The question was whether Sec. 408(d)(3)(B) applied to taxpayers on an aggregate basis or on an IRA-by-IRA basis.  By agreeing with the Tax Court’s decision applying the rule on an aggregate basis, the IRS went against its own proposed regulations 3 which it now intends to withdraw.

Sec. 408(d)(3)(A)(i) permits a tax-free rollover of funds in an IRA as long as the amount distributed to the taxpayer is paid into an IRA for the taxpayer’s benefit within 60 days, subject to the one-rollover-per-year limit of Sec. 408(d)(3)(B).  To give IRA trustees time to change their procedures for making IRA rollovers and disclosure documents, the new rules will not apply to rollovers made before 1.1.15.

1 Bobrow, T.C. Memo. 2014-21

2 Announcement 2014-15

3 Prop. Regs. Sec. 1.408-4(b)(4)(ii) and IRS Publication 590, Individual Retirement Arrangements (IRAs)

Questions? Contact your Berdon advisor or Saul Brenner at 212.331.7630 | sbrenner@berdonllp.com

 

Personal Wealth Services LEAD ADVISORS View All