A new rule limits the number of IRA rollovers that can be made in any one year period to just one rollover.
Recently, the Tax Court held that the limit applies not to each separate IRA an individual may own, but to all of his or her IRAs. This is a contradiction to proposed IRS regulations and tax publications that state that the limit applies to each IRA an individual owns. Therefore, an individual with three IRAs could make three rollovers in a one year period under the IRS guidance, but only one under the Tax Court decision.
After considering the matter, the IRS announced that it will adopt the more restrictive view of the Tax Court. However, the new rule won't apply to any rollover that involves a distribution occurring before 2015. The IRS emphasized that an IRA owner will continue to be able to transfer funds from one IRA trustee directly to another as frequently as desired. Such transfers are not rollovers and thus are not subject to the limit.
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