IRA one-rollover-per-year rule. Another reason for Solo 401k

You generally cannot make more than one rollover from the same IRA within a 1-year period. You also cannot make a rollover during this 1-year period from the IRA to which the distribution was rolled over.

Beginning after January 1, 2015, you can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own.

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

Once this rule takes effect, the tax consequences are:

• you must include in gross income any previously untaxed amounts distributed from an IRA if you made an IRA-to-IRA rollover (other than a rollover from a traditional IRA to a Roth IRA) in the preceding 12 months, and
• you may be subject to the 10% early withdrawal tax on the amount you include in gross income.

You can still roll several traditional IRAs into a Solo 401k plan without penalty. Maybe now is the time to Roll your IRAs over.

Solo 401k plan:Your Opportunity for Checkbook control of your future