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Clarify the one year IRA rollover rule
Old 01-09-2015, 12:42 AM   #1
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Clarify the one year IRA rollover rule

I searched both Google and ER and could not clear answer to the question of when does the one year (365 day) rollover rule start.
On Dec 21, 2013, I took a normal IRA distribution from bank 1 and decided to indirect rollover the money Feb 10, 2014 into IRA bank 2.
If I do a new indirect rollover into IRA bank 3, does the 1 year rule start Dec 21, 2013 or Feb 10, 2014?
I have done indirect rollovers to avoid some of the paper work when doing bank to bank IRA transfers.
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Old 01-09-2015, 08:30 AM   #2
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Yahoo had an article today about this topic:

https://finance.yahoo.com/news/ira-r...100000031.html
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Old 01-09-2015, 08:49 AM   #3
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I think it would be the distribution date, the limitation section references the date of receipt.

26 U.S. Code § 408 - Individual retirement accounts | LII / Legal Information Institute


(B) Limitation
This paragraph does not apply to any amount described in subparagraph (A)(i) received by an individual from an individual retirement account or individual retirement annuity if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in that subparagraph from an individual retirement account or an individual retirement annuity which was not includible in his gross income because of the application of this paragraph.
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Old 01-10-2015, 07:33 PM   #4
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Originally Posted by jim584672 View Post
Yahoo had an article today about this topic:

https://finance.yahoo.com/news/ira-r...100000031.html
Sorry but this doesn't address my issue. This has to do with the new ruling that limits to transferring IRA funds within the 1 year period.
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Old 01-10-2015, 07:37 PM   #5
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Originally Posted by rbmrtn View Post
I think it would be the distribution date, the limitation section references the date of receipt.

26 U.S. Code § 408 - Individual retirement accounts | LII / Legal Information Institute


(B) Limitation
This paragraph does not apply to any amount described in subparagraph (A)(i) received by an individual from an individual retirement account or individual retirement annuity if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in that subparagraph from an individual retirement account or an individual retirement annuity which was not includible in his gross income because of the application of this paragraph.
Again, after reading the whole page, this isn't crystal clear to me.
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Old 01-10-2015, 07:43 PM   #6
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I appreciate the comments but I had hoped that either an accountant or someone with specific knowledge and/or experience would weigh in with a specific answer to my question to use Dec 21 or Feb 10 as the start date for the 1 year rule and possible provide a link for their answer. I am overseas and don't have access to an accountant.
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Old 01-10-2015, 09:09 PM   #7
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IRA One-Rollover-Per-Year Rule

I think the first sentence here says it all...

Beginning in 2015, you can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own (Announcement 2014-15 and Announcement 2014-32). The limit will apply by aggregating all of an individual’s IRAs, including SEP and SIMPLE IRAs as well as traditional and Roth IRAs, effectively treating them as one IRA for purposes of the limit.

Only 1 rollover in a 12-month period. You can't just keep starting over after each rollover.
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Old 01-10-2015, 09:10 PM   #8
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disclaimer- I'm not an accountant.
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Old 01-10-2015, 09:16 PM   #9
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Quote:
Originally Posted by rbmrtn View Post
I think it would be the distribution date, the limitation section references the date of receipt.

26 U.S. Code § 408 - Individual retirement accounts | LII / Legal Information Institute


(B) Limitation
This paragraph does not apply to any amount described in subparagraph (A)(i) received by an individual from an individual retirement account or individual retirement annuity if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in that subparagraph from an individual retirement account or an individual retirement annuity which was not includible in his gross income because of the application of this paragraph.

Also not an accountant; but, I think this statement is quite clear. The distribution occurs and that starts the date.

I would think long and hard about doing ANY indirect roll-overs...... People have used this as a rolling loan which was never intended to be permitted.
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