IRS to Enforce IRA Rollover Rule

08:04 14 July in Uncategorized

July 14, 2014

Starting January 1, 2015, the IRS will begin limiting the number of rollovers from IRA to IRA to only one per year per taxpayer, regardless of the number of IRA’s an individual may have.  Prior to this change the annual rollover limit was based on individual IRA accounts, meaning taxpayers with multiple accounts could transfer funds between accounts with no tax liability. While this ruling will limit rollover transactions it will not limit the number of ‘conversion’ rollovers, Traditional to Roth IRA, or direct asset transfers from one trustee to another.  This ruling makes it more important than ever to discuss your options with your CPA or financial advisor when transferring funds to prevent unexpected tax consequences. Visiting the IRS website below can also offer more information on the changes.

IRS: One Rollover Per Year Rule