The Internal Revenue Code states a one-per-year limit on tax-free rollovers between Individual Retirement Arrangements (IRAs). The U.S. Tax Court interpreted the Internal Revenue Code to effectively preclude people from making more than one tax-free rollover within a one-year period, even if different IRAs are involved. The IRS clarified how this applies to the 2014 IRA rollover. The new interpretation will go in effect beginning January 1 of 2015. The IRS stated that a 2014 IRA distribution that is properly rolled over to another IRA would not have an effect upon distributions or rollovers during 2015.

See Internal Revenue Service, “IRS Clarifies Application of One-Per-Year Limit on IRA Rollovers, Allows Owners of Multiple IRAs a Fresh Start in 2015,” (November 10, 2014).

Posted by Aryane Garansi, Associate Editor, Wealth Strategies Journal