The Once-Per-Year IRA Rollover Rule Quick Guide

Here is a quick guide to help you understand the new once-per-year rollover rule and how it affects your IRA rollover plans.

Don’t process an IRA rollover IF:

You already made one tax-free rollover from an IRA to another (or the same) IRA within the last 12 months.

Key Items:

  1. The once-per year rule means once every 365 days, not once per calendar year.
  2.  The limit applies to ALL IRAs in aggregate, including Traditional IRAs, Roth IRAs, SIMPLE IRAs and SEP IRAs.
  3. The IRS cannot allow you to fix violations of the once-per-year rollover rule like they can for some 60-day rollover violations.

A Few Exceptions to this New Rule:

  • IRA to a Roth IRA conversions
  • IRA rollovers to and from company retirement plans such as 401(k)s including a ROBS 401k and a Solo 401k
  • IRA first-time home buyer distributions when the purchase is delayed or cancelled.
  • Qualified reservist distributions that are timely repaid
  • IRA-to-IRA or Roth IRA-to-Roth IRA direct transfers
  • IRA direct rollover to a Solo 401k or Rollover as Business Startup 401k/PSP

Compliance Note:

One solution to avoiding the new once-per-year rollover rule is to move IRAs via a direct transfer. The regulations allow unlimited direct (trustee-to-trustee) transfers between IRAs because they are not considered rollovers.

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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