L1: rolloversDear 72T,
Would thereceipt ofone lump sumIRA distribution, be permitted to be rolled over to various trustees at different intervals,as long as,all therollovers are completed within 60 days? I was wondering if the first partial rollover cuts offthe ability, to rollover the remainder unless all rollovers are performed on the same day?
2008-04-11 05:38, By: car-tows, IP: [126.96.36.199]
This is OK, since the one rollover per 12 month rule traces back to the distribution, and you have only one distribution here.
But you could not do the reverse, that is to take several distributions, but roll them over in a lump sum at one time. In that latter case, you have made multiple rollovers of distributions done later than the initial distribution.
You would simply report the distribution and rollover of the entire amount on lines 15a and 15b of Form 1040 and enter “Rollover” next to 15b.
You need to be sure not to do another rollover within 12 months from any of those IRA accounts and not to have done one in the prior 12 months from the source IRA. If either of those occur, you have violated the 12 month rule. Since these rollovers result in sacrifice of certain flexibility for the next 12 months, it is always better to move the funds by direct transfer if possible. This is even more true if a 72t plan is involved with much more costly exposure to problems.2008-04-11 21:45, By: Alan S., IP: [188.8.131.52]