The IRS has withdrawn a portion of a 1981 proposed regulation that would apply the IRS rollover limitation on an IRA-by-IRA basis.  The Tax Court recently held that the rollover limitation, limiting rolling distributions from one IRA to another, applies on an aggregate basis.  The withdrawal shows the IRS’s intent to follow the Tax Court’s decision.  Now, An IRS rollover cannot be made if the taxpayer has made a rollover with respect to any of their IRAs within the last year.

See “Individual Retirement Plans and Simplified Employee Pensions; Partial Withdrawal,” 26 CFR Part 1 (amending 46 Fed. Reg. 36198) (July 10, 2014)

Posted by David Staggs, Associate Editor, Wealth Strategies Journal