transfer from one IRA to another

[Guest greggi39]

If i withdraw money from ira at a bank and then deposit the amount in another ira at a different financial institution--within 60 days--will i avoid any IRS penalties ?

[Appleby]

Yes. Assuming that you have not distributed and rolled over these same assets from another IRA within the last twelve months

[Guest Derelict]

Yes. Assuming that you have not distributed and rolled over these same assets from another IRA within the last twelve months

Actually the pub 590 clarified that to any distributions from an account that had a distribution rolled over from it or rolled over into it would not be eligble for rollover for 1 year from date of receipt of the rollover money. (pg 23 on the 2003 Pub.590)

[jevd]

Thanks Derelict.

They have finally cleared that up.

[Appleby]

Thanks Derelict- the text of the IRC supports this--- text of IRC Sec. 408(d)(3)(B) is as follows

LIMITATION—This paragraph does not apply to any amount described in subparagraph (A)(i) received by an individual from an individual retirement account or individual retirement annuity if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in that subparagraph from an individual retirement account or an individual retirement annuity which was not includible in his gross income because of the application of this paragraph.

Now what has me scratching my head is why we used to even consider pub 590, when the overriding authority is the IRC… I checked as far back as 2001, and the text for the IRC was the same.

[Guest greggi39]

does that only refer to a rollover--where the proceeds are distributed to the person--the payee on the check.

would that also apply to a transfer from custodian to custodian of each IRA?

[Appleby]

Yes. It applies only to a rollover. There is no limitation on the number of times a non-reportable transfer may occur during any period.