IRS toughens the one-year wait between IRA rollovers

Description

Abstract: To receive tax-free treatment, the amount withdrawn from an IRA must be redeposited into the same or another IRA no later than 60 days after the taxpayer received the distribution. For years, the IRS has held that the one-year waiting period between IRAs applies separately to each IRA, but has now adopted the Tax Court’s recent unfavorable interpretation of the one-IRA-rollover-per-year rule, which considers all the taxpayer’s IRAs together for the limitation. The new, stricter interpretation will not be applied to any rollover involving a distribution that occurs before January 1, 2015. So there is still a little time to take advantage of the current, more liberal, rules.