IRS to follow tax court’s ruling on IRA rollovers

Published on May 26, 2014

Last month we told you about the Tax Court’s ruling in Bobrow, T.C. Memo. 2014-21 about IRA rollovers. The Tax Court ruling limits tax-free IRA rollovers to one rollover per taxpayer per year, regardless of how many IRAs the individual has.

The IRS announced it will follow this decision; it will issue new regulations that follow the Tax Court’s interpretation of the law and apply the limitation on an aggregate basis. It will also revise Publication 590 to the extent needed to reflect that interpretation.
Be sure to consult your accountant or tax planning specialist about this matter and how it may affect your overall financial picture and your retirement accounts in particular.

If you have any questions about IRA distributions or rollovers, and the 60-day period that allows for tax-free rollovers into an IRA, ask one of our knowledgeable professionals at Next Generation Trust. Contact us at Info@NextGenerationTrust.com or call (888) 857-8058.