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Rollovers and Plan-to-Plan Transfers by the Participant

A retirement plan distribution is not taxed in the year received if it is “rolled over”
to the same or a different retirement plan or IRA, if various requirements are met.
§ 402(c)(1). A rollover means either:

A. 60-day rollover. A distribution from one plan or IRA to the participant (or his surviving spouse), followed by the participant’s (or spouse’s) redepositing the distribution in the same or another plan or IRA; or

B. Direct rollover. The transfer of assets from the participant’s account in a qualified retirement plan (QRP) to an IRA in the name of the participant or of his surviving spouse.

NOTE: You cannot role over money from one IRA to another within 12 months of another roll over with the same IRAs. There are two ways this can be fixed

1. You can roll the money over into a 401K plan or another qualified plan.

2. Roll it into a Roth IRA even if you are not eligible. You can then re characterize the IRA back to a traditional IRA. This is not subject to the same limitation as a traditional IRA.

You cannot retroactively elect to make the first transaction a distribution
NOTE: Plan to Plan transfers do not have the limitations of 1 roll over transfer per year.

NOTE You must roll over the same property as received. You cannot exchange money or another asset of the same value unless you sell the asset.

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