Very Important IRS IRA change for 2015: Please read, and save and share info:
A) 60-Day Rollovers for IRAs – Effective for distributions taken on or after January 1, 2015, you are permitted to roll over only one distribution from an IRA (Traditional, Roth, or SIMPLE) in a 12-month period, regardless of the number of IRAs you own. A distribution may be rolled over to the same IRA or to another IRA that is eligible to receive the rollover.
However, you can still do as many custodians to custodians transfer (also known as a Direct Transfer) as you want. A Smart thing to do is to save your one Rollover ( getting the money from the firm/custodian in a check to you in your hands or your non-IRA account at your bank) per every 12 months and only use that in an emergency, but do all other movements of your IRA’s by Firm to Firm transfer.
Just to be clear:
1) A rollover is where you get a check or funds distributed directly to you personally and you have the option to rollover it back into an IRA with a custodian/Firm within 60 days to avoid taxes (or taxes and penalty if you are under age 59 and half*)
2)A Direct IRA to IRA Transfer is where you do not take physical possession of the funds personally: (Hands off),It gets moved by going from one firm to another: Example if you have an IRA at Firm A and you Instructed firm B to take possession of the money from firm A;
Firm A will send the IRA funds directly to your IRA at Firm B; once it gets yours the transfer instructions from firm B.
A Direct IRA Transfer, is now you best option if you want to move your IRA money from one firm to another; less work and this usually does do not generate any IRS 1099R forms.
For more information on the new rollover limitations, please visit the IRS website at www.irs.gov..
*Like most IRS Rules there are always some exceptions
Please remember to check out my books for more helpful tips and paying less taxes and Safer Investments ideas: