Q:
Which of the following statements regarding rollovers versus transfers of IRA accounts are true?  
I. Rollovers are limited to one per year
II. Transfers are unlimited
III. Rollovers must be accomplished within 60 days
IV. Transfers may only be done semi-annually
   
A) I, II, III
B) I, IV
C) II, IV
D) I, III
A:
The correct answer is A)
When an individual moves “qualified” (pre-tax) money from, for instance, a pension plan into an IRA, there are two choices; rollover or transfer. If the individual takes a check from a pension plan, he has 60 days to get the funds into the hands of an IRA trustee without incurring a penalty. There is a one-time-per-year limitation on rollovers. If the individual finds a new trustee for the IRA and has the trustee of the pension plan directly transfer the funds, there is no limit to the number of transfers in a year.

RELATED FAQS

  1. Can I rollover a SEP IRA from one account into a traditional IRA at another broker ...

    <p>I have a client who would like to rollover a SEP IRA at another firm into a traditional IRA at my firm. Is this possible/simple ...
  2. What are the tax implications on an IRA conversion to a Roth?

    <p>In 2015, a non-deductible contribution was made to a traditional IRA. On the same day, the amount was converted to a Roth ...
  3. How can we rollover a traditional IRA into a back door Roth IRA?

    <p>My husband transferred his 401k to a traditional IRA in Nov 2015. Can he still transfer it to a back door IRA?</p> ...
  4. Can I rollover a SIMPLE IRA to a Roth IRA tax free?

    <p><span style="line-height: 20.8px;">I am currently employed and my SIMPLE IRA&nbsp;has been in place for about 15 years. ...
  5. I have several CDs in my IRA with different maturities. Can I roll them over to another ...

    The limitation on rollovers applies on a per IRA basis. In general, if an IRA is involved in an IRA-to-IRA rollover, it cannot ...
  6. Other than an IRA, is there another way to invest my 401k money?

    <p>I left my job and am currently looking for another job.&nbsp;I have 37,000 in my 401K.&nbsp;I am planning to withdraw ...
RELATED TERMS
  1. IRA Rollover

    A transfer of funds from a retirement account into a Traditional ...
  2. Rollover IRA

    A special type of traditional individual retirement account into ...
  3. Rollover

    A rollover is when you do the following: 1. Reinvest funds from ...
  4. IRA Transfer

    The transfer of funds from an Individual Retirement Account (IRA) ...
  5. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  6. Eligible Rollover Distribution

    A distribution from an IRA, qualified plan, 403(b) plan or 457 ...
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center