IRA Rollover Tax Changes for 2015
There are two types of IRA rollovers, a Direct Rollover (also known as a Direct Transfer) and an Indirect Rollover. A Direct Rollover is when funds are transferred directly from one IRA or retirement plan to another IRA or retirement plan and the transfers between IRAs can be made at any time. An Indirect Rollover is when distributions are made from an IRA or retirement plan and paid directly to the individual. In the past, if funds were re-deposited into a qualified IRA or retirement plan within 60 days, there were no taxes due on the distribution. Beginning this year, only one 60-day rollover between IRAs may be completed per year per individual. For example, regardless of how many IRAs you have, you can only do one 60-day rollover a year. If a second rollover is done, it all becomes taxable.