Funding Your IRA with a Rollover? Make Sure You’re on the Right Side of the IRS

By Elsie Dudukovich0 Comments

Along with the celebrations and ‘year in review’ stories of 2014’s fourth quarter, news of the IRS’ new interpretation of the rollover rule for IRAs traveled throughout the financial news sector.  Yet, like abandoned New Year’s resolutions, January can seem like a long time ago and it’s easy to forget about news from the IRS – especially if your financial strategy at the time didn’t include doing a rollover.

But what happens when the house your IRA owns suddenly needs a new roof and you’ve already reached your contribution limit for the year?  

For some, rolling over funds from another IRA at another custodian would have been a quick remedy for unexpected expenses.  However, with the new IRS ruling which went into effect January 1, 2015 IRA rollovers are limited to one per person within any 12 month period.
 
This change is based on the ruling of the Tax Court case Alvan L. Bobrow and Elisa S. Bobrow v. Commissioner of Internal Revenue.  Information from the IRS on the new rollover rule can be found here.
 
If you’re planning a rollover, consult with your financial or tax advisor to determine the option and timing that best meets your needs. If you have questions or need help completing a form, contact our Client Service Team at 855-233-4382, Option 2, or by email at help@trustetc.com.