60-Day Rollover

60-Day Rollover rule was part of the IRA rollover rules that have been clarified. Unfortunately, they are now more heavily restricted. The IRS limits one rollover from an IRA to another IRA in any 12-month period. The difference is that the limit will now apply by aggregating all IRAs, effectively treating them as one for purposes of the one rollover per 12-month period limit.

60-day rollover, rollover change, rollover rule

60-Day rollover change affects you how?

Basically, in the past, one could theoretically have multiple IRAs and take a distribution from one IRA to contribute to another IRA.  In this way, one could theoretically string out a 60-day rollover indefinitely as long as one had enough IRAs out there.  The change now restricts one 60-day rollover per 12 month period, per taxpayer. That being said, a married couple might be able to string out a 60-day rollover over 120 days if they timed it properly between each of their IRAs.

However, if you want a happy marriage, I would never ever drag my wife into such shenanigans. Maybe you should give Alex Franch, BS EA  at Worthtax a call the next time you have a question about an IRA rollover. He just might be able to save you a whole lot of grief.

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