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IRA One Year Rule
Old 12-26-2012, 10:05 AM   #1
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IRA One Year Rule

I'm curious about this rule I found in an IRA publication. I assume this means that if I rolled a pension lump-sum payment into a traditional IRA in October, then I cannot try to roll that into an employer 401(k) plan until next October - is that right?
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Old 12-26-2012, 01:53 PM   #2
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Did you actually do a rollover where you physically handled a check made out to you as an individual or was it made out to your IRA or did you do a direct trustee to trustee transfer? If you did a direct trustee to trustee transfer,then the limitation would not apply. If you did a rollover, I'm not sure but it might depend on how that check was written. You might want to post in the retirement sub-forum at fairmark.com and see what Alan S. says.

btw....I believe the one yr rule means you wait 365 days from the Oct date, not just that you wait till the next Oct.
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Old 12-26-2012, 02:05 PM   #3
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I have been scouring the web for opinions on this and have gotten one elsewhere that helped me understand things differently. Now, I think these should both qualify as direct trustee to trustee transfers (and therefore not affected by the rule). We didn't see a check, for sure. And one of the two transfers was a distribution from a pension plan into an IRA, so a rule that pertained to rollovers "from one IRA to another" wouldn't apply.
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Old 12-26-2012, 02:44 PM   #4
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If you didn't see any checks, that does sound like TTEE to TTEE transfers that are not limited.

If transfer was rollover pension plan to IRA, a rule that pertained to rollovers between IRAs wouldn't necessarily apply but it might.......also be aware that wording in IRS pubs , although generally pretty good isn't perfect.
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Old 12-26-2012, 02:48 PM   #5
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My CFP concurs. I hoe that's good enough.
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