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Multiple rollovers in same year? yes or no?

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  • Multiple rollovers in same year? yes or no?

    Had a rollover question for any advisors or anyone else in the know.

    Earlier this year we parted ways with our financial advisor, and took our accounts from his firm to vanguard to cut back on fees.

    Accounts transferred included a rollover IRA from my wifes old job, and a rollover IRA from my first job after residency both into respective vanguard rollover IRAs.

    Now, I would like to roll these accounts into my current employers 403b, and my wifes current 401k, allowing us to take advantage of the backdoor roth.

    Am I able to do that in the same year without committing a multiple rollover penalty?

     

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

    I saw this:

    The one-per year limit does not apply to:

    • rollovers from traditional IRAs to Roth IRAs (conversions)

    • trustee-to-trustee transfers to another IRA

    • IRA-to-plan rollovers

    • plan-to-IRA rollovers

    • plan-to-plan rollovers


    My interpretation is that there would be no penalty then? Just wondering if anyone has a clear answer on this?
    If not, i'll probably just wait until 2018 and then do the rollover, to avoid incurring any penalty.

     

    thanks for any help!

     

  • #2
    Changing firms is not a rollover. Only if you changed account types.

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    • #3
      They don't want you taking possession of the money and using it free for 60 days multiple times a year. So just do trustee to trustee transfers and it's no big deal.
      Helping those who wear the white coat get a fair shake on Wall Street since 2011

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      • #4
        thanks guys!

        appreciate the feedback. Very helpful.

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        • #5
          As you have already learned, you are fine in rolling over to your current employer plans. Before you do, however, have you considered either converting to Roth IRAs or setting up SOLO-401k's for possible side gigs? This would allow you to have the flexibility of managing your retirement funds w/o limiting your access to only the strictures of your employer plans.
          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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          • #6
            Good suggestions. But my wifes rollover was low six figures so the tax implications on converting to a roth would have been significant.

            I like the idea of a side hustle, I work as a radiation oncologist and i have most nights and weekends free. It just seems like those opportunities (at least in my field) are limited. I've done some surveys for pay in the past with little success (~2k last year), and that income ended up getting taxed at 39%--so i decided that wasnt worth the hassle for me. i've also made some feeble attempts to do some talks for drug companies that have oncology drugs related to radiation (which are few and far between), but those attempts never really got off the ground.

             

            thanks again for all the advice, answers, and suggestions.

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