The IRS recently released clarifying guidance on the one-per-year limit on tax-free rollovers between IRAs.
Several months ago, the Tax Court stunned practitioners and taxpayers alike by holding in the Bobrow case that an individual could not make more than one nontaxable 60-day rollover within each one-year period, even if the rollovers involved different IRAs. Publication 590, Individual Retirement Accounts (IRAs), provided that the one-rollover-per year was applied on an IRA by IRA basis, not on an aggregate IRA basis. This contradiction left many in limbo for a short period of time. Somewhat surprisingly, the IRS quickly indicated …read more
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