Trustee to Trustee Transfers

Forum|Forum|1 year ago
October 30, 2024
1 reply
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Can I perform a trustee to trustee transfer from my 401-K twice in the same year>

I would like to transfer a certain amount out of my company 401-K to a brokerage account (IRA to IRA). In the same year I would also like to transfer some money from the company401-K to a brokerage account (IRA to Roth conversion).

vithalanin

Employee Tax Expert

You can do multiple Trustee to Trustee transfers in the same year. There is no penalty for doing this. Just ensure that it is a direct transfer. There is a limit of 1 rollover from a Traditional IRA to another IRA in a calendar year.

The one year limit does not apply if:

1) rollover is from plan-to-IRA rollovers

2) IRA-to-plan rollovers

3) trustee-to-trustee transfers to another IRA

4) plan-to-plan rollovers

Here is the IRS link with more information on this:

https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions