It is super important with a self-directed IRA that you stay current on many of the laws and rules associated with IRAs and 401ks. The IRS comes out with new or adjusted rules from time to time and if you don’t stay up to date you may accidentally do something that can ding void your self-directed IRA or 401k or you may be charged with other certain taxes that could have been avoided if you would have kept up on the rules.
For those of you who have been doing IRA rollovers in the past or have been thinking of doing an IRA rollover there is a new rule that has gone into affect as of January 1, 2015. You’ll want to be aware of this new rule below. For help with an IRA rollover to a self-directed IRA or 401k contact us today.
Now affective since January 1, 2015 you can only make one rollover from your IRA to another in any 12-month period. Regardless of the number of IRAs that you own you must abide by this rule.
A few exceptions that are not limited are trustee-to-trustee transfers between IRAs, rollovers from traditional to roth IRAs (conversions) and direct transfers of IRA
If you would like more information regarding how the one transfer per year actually works, check out, “IRA One Rollover Per Year“. This will also explain some of the tax consequences of the one rollover per year limit.
If you would like to know more about what the difference between a transfer and rollover then check out, “Rollover vs Transfer“.
Contact your tax attorney or CPA for help with how this affects your current situation or feel free to contact us for more information on self-directed IRAs and how you can maximize your retirement portfolio with a self-directed IRA.
Author: Nick Barker