IRA Rollover Changes

If you are considering rolling over your IRA assets to an existing or new IRA, you need to be aware of a recent change that affected IRA rollovers. The IRS changed its interpretation of the one-per-12-month rule following a recent U.S. Tax Court ruling.

The court ruled that a taxpayer is limited to one rollover per 12-month period, regardless of the number of IRAs he/she has. The IRS for decades stated that you could roll over one IRA distribution per 12-month period for each IRA that you own. The IRS issued guidance in March 2014, stating that it will apply the tax court’s new interpretation January 1, 2015.

For 2014, you were still allowed to roll over one distribution for each IRA you owned during any 12-month period. For 2015, you may roll over only one IRA distribution in any 12-month period, regardless of how many IRAs you own. You still may perform an unlimited number of transfers.

You should consult with a competent tax advisor if you are rolling over an IRA distribution.