The “one-rollover-per-year” rule limits retirement account holders to one indirect IRA-to-IRA rollover within a 12-month period. “Indirect” means you withdraw funds from one IRA and deposit them yourself in the same or another IRA within 60 days. If you attempt a second indirect rollover during the one-year period, the portion not previously taxed will be treated as a taxable distribution. And if you’re under age 59½, a 10% penalty generally will apply (with exceptions). What’s more, a second rollover may be treated as an excess IRA contribution subject to a 6% annual tax. But the rollover rule doesn’t apply to rollovers from traditional IRAs to Roth IRAs. Contact us for details.
