IRS Changes 2015 Rules on IRA Rollovers

Jan 1, 2015:
A good friend offered this following important US Tax update:
“The US IRS (changed) the limit on the number of IRA rollovers on December 08, 2014.   The IRS announced that beginning January 1, 2015, you’ll be limited to only one IRA-to-IRA rollover within a 365-day period, no matter how many IRAs you have.

Previously, the IRS permitted one rollover per year for each IRA you owned.

Benefits of an asset transfer:
If you still want to move IRA assets, you may want to consider doing so via an asset transfer instead of an indirect rollover. Asset transfers aren’t affected by the rollover limit or subject to tax reporting.

With an indirect rollover, IRA proceeds are made payable to the owner, who has 60 days to deposit them into another (or the same) IRA. With an asset transfer, IRA proceeds move directly from one IRA custodian or trustee to another.

What’s staying the same:
This change doesn’t affect conversions from traditional to Roth IRAs. Rules for direct rollovers from an employer plan to an IRA also remain unchanged, and there are no limits on the number of direct rollovers you can make in any given year.

Also, you’ll still get tax forms to report your rollover activity. Both a direct rollover from an employer plan and one between IRAs will generate a Form 1099-R to report distributions and a Form 5498 to report rollover contributions into IRAs. ”

Click to access ISGVEMO.pdf

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Please see our main article on Taxes at:  IRS Tax Issues for Americans Living and Working Abroad in Mexico – Master Article

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

Read-on MacDuff . . .

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1 Response to IRS Changes 2015 Rules on IRA Rollovers

  1. Steph says:

    Could you please private message me at my email. I have some tax questions and you seem to know more about what you are talking about than anyone else I have found in Cancun.

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