InvestmentNews: Help Clients Avoid IRA Rollover Tax Trouble

August 8, 2014

A version of this article was posted on InvestmentNews.com on August 8, 2014

By Robert Cirrotti, Head of Retirement Solutions, Pershing LLC, a BNY Mellon company

Earlier this year, the retirement industry was surprised by a tax court ruling1 which changed the interpretation of the number and timing of rollovers an IRA owner could direct. The tax court determined that IRA rollovers are limited to one per individual, per year. Prior guidance, including the IRS Publication 590, interpreted the rules to allow one rollover per account. On March 20, the IRS released announcement 2014-15, indicating that the IRS will begin to apply the Bobrow interpretation to rollovers starting January 1, 2015.

1Alvan L. Bobrow, et ux., v. Commissioner, TC Memo 2014-21, Docket No. 7022-11.

Help Clients Avoid IRA Rollover Tax Trouble [PDF]