401k rollover/IRA distribution

L1: 401k rollover/IRA distributionI have an IRA which I received a distribution from in 2005 and rolled back the funds within the 60 day criteria in November. I am planning ontransacting a partial direct rollover from my 401k plan to this IRA. Will the 2005 prior distribution & redeposit of funds in Novemberinhibit my ability to begin 72t distributions prior to the end of the 365 period and is there any other conflicts I may be missing.
Thank you2006-02-01 13:06, By: Bob K, IP: [71.254.83.39]

L2: 401k rollover/IRA distributionHi Bob:
When you state that your are “planning on transacting a partial direct rollover from my 401k plan to this IRA,” do you mean that your K-plan custodian will process a “tustee-to-trustee transfer” to the IRA? If this is the case then there should be no problem. But if you are going to take “beneficial receipt” of the K-plan funds, less of course the mandatory 20% tax withholding which you must make up from other funds to complete the rollover, and then do the “60-day rollover” into the IRA, then you may have a problem.
In my opinion the one rollover per 365 days is about as dumb a rule to ever come along. What difference does it make, especially since you can do an unlimited number of “trustee-to-trustee transfers” within the same 365-day period.
If necessary, consider going from the K-plan to a new IRA, then process the “trustee-to-trustee transfer” to your current IRA.
Gordon, what say you?
Jim2006-02-01 14:05, By: Jim, IP: [70.184.1.35]

L2: 401k rollover/IRA distributionIt would bea trustee to trustee 401k to Ira rollover.
Thanks2006-02-01 17:34, By: Bob K, IP: [71.254.83.39]

L2: 401k rollover/IRA distributionBob:
I think you are OK, but you might want to read my posts to “Curious Yellow” on this subject.
Also, I would like Gfw to comment on the restrictions involving the 365-day rule. He and I had a phone conversation on this subject and he is quite knowledgeable on this subject.
Jim2006-02-02 09:34, By: Jim, IP: [70.184.1.35]

L2: 401k rollover/IRA distributionI don’t see any problem here “yet”, inasmuch as the 12 month rollover rule applies only to rollovers FROM IRAs, not to them. Therefore the 401k rollover whether done by direct transfer or the non recommended employee rollover would not count since it was notFROM an IRA, but into one. So there remains just one strike against the IRA, which was the November rollback.
The 72t distributions would normally not be rolled over, but since you can do either a direct transfer or a rollover within the SEPP universe, you must still be careful not to create the second and ineligible rollover. I would absolutely not risk doingany rollovers until that first year passed. because a second rollover would be an excess contribution resulting in a corrective distribution which could blow the SEPP if it exceeded the SEPP distribution amount. Bottom line – no problem yet, but only one bad step from creating one.2006-02-02 15:08, By: Alan S., IP: [24.116.165.157]