Hi Everyone,

New rules apply to 2015 regarding IRA rollovers. Let’s make sure you understand them. If you have questions, don’t be shy; I’m here to help.

Here you go,



New in Tax: One IRA Rollover Per Year

Beginning in 2015, investors are only able to make one rollover from an IRA to another (or the same) IRA in a 12-month period. This limit applies to all IRA accounts, regardless of the number you may own.

In this tax change, all of an individual’s IRAs are aggregated and treated as one IRA. These accounts include any SEP IRAs, SIMPLE IRAs, Traditional IRAs, and Roth IRAs. The decision states that a non-taxable rollover from one IRA to another is not permitted if rollover from any of their IRAs has been made in the preceding one-year period. It’s important to note that trustee-to-trustee transfers between IRAs, direct rollovers to or from a Qualified Plan, and rollovers from traditional to Roth IRAs (“conversions”) are not limited.

IRA distributions rolled over to another or the same IRA in 2014 will not prevent a 2015 distribution from being rolled over, provided the 2015 distribution is an IRA that wasn’t involved in the 2014 rollover.

Please note that firms may not be tracking this for you so lean on me if you need to. The penalties and tax consequences are severe for failing to follow these new rules.

Until next week,

Susan R. Linkous

~Special thanks to LPL Financial for article contribution.