Retirement Savings and Benefits
Questions and comments about IRAs, 401k accounts, social security, and other forms of retirement savings and benefits.
definition of IRA-to-IRA rollover
Posted by: wanttoknow, May 2, 2017 06:29AM
I need to move my Roth IRA from Calvert Investments (a mutual fund company) to Vanguard. For reasons I won't go into, I want to do this by indirect rollover, rather than direct transfer. I.e. I want Calvert to distribute the funds to me, and within 60 days I will put them into a Vanguard IRA.

QUESTION #1:
I know that only one rollover is allowed per 365 days.
If I take the distribution in cash--because of some Calvert restrictions, I may need to get the distribution in 2 chunks, but the total amount will go into the Vanguard IRA in 1 chunk. Would this qualify as only one rollover?

QUESTION #2:
Assume that I take the distribution in-kind--i.e. the mutual fund shares now in the Calvert Roth IRA are transferred into a Calvert non-IRA account. Would I then be able to roll over the IRA by putting an equal amount of cash into a Vanguard Roth IRA?

Re: definition of IRA-to-IRA rollover
Posted by: Alan S., May 2, 2017 06:21PM
No, the one rollover limit applies to each distribution, so you can only do an indirect rollover for one of these distributions, and even that one will begin a 12 month period before you can do another indirect rollover.

Conversely, if you were able to take a single distribution, you could roll it over in two different rollover contributions as long as they were both done within the 60 day deadline.

Re: definition of IRA-to-IRA rollover
Posted by: wanttoknow, May 2, 2017 07:15PM
Thanks, Alan.

Our messages have "crossed". While you were answering my first question, I added a second question to my original message.

Re: definition of IRA-to-IRA rollover
Posted by: Alan S., May 2, 2017 11:06PM
Q 2 - No, the following paragraph from Pub 590 A addresses this question:

"The same property must be rolled over. If property is distributed to you from an IRA and you complete the rollover by contributing property to an IRA, your rollover is tax free only if the property you contribute is the same property that was distributed to you."



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