IRA Rollover Distributions 

Are IRA rollover distributions permitted in the same year an IRA rollover is completed?

Yes.

There is no limit on the number of IRA rollover distributions that may be taken, only on IRA rollovers.

An IRA rollover distribution not rolled over or one that does not qualify for IRA rollover treatment is taxable and subject to penalty unless a penalty exception applies.

Which IRA rollover distributions are not eligible for IRA rollover?

    * Required IRA distributions.

IRA rollover amounts that must be distributed during a particular year under the required IRA distribution rules are not eligible for IRA rollover treatment. This includes required minimum distributions and 72(t) distributions (including a required IRA distribution not made in the year of death of the owner).

    * Not inherited from spouse.

If an inherited IRA is inherited from someone other than a spouse, the beneficiary cannot rollover IRA or allow it to receive an IRA rollover contribution.

How are IRA rollovers from IRAs reported?

Report any IRA rollover from one traditional IRA to the same or another traditional IRA on lines 15a and 15b of Form 1040 or on lines 11a and 11b of Form 1040A.

Enter the total amount of the IRA rollover distribution on line 15a of Form 1040 or on line 11a of Form 1040A. If the total amount of IRA on line 15a of Form 1040 or line 11a of Form 1040A was rolled over, enter zero on line 15b of Form 1040 or line 11b of Form 1040A, indicating that none of the distribution is taxable. Otherwise, enter the taxable portion of the part that was not rolled over on line 15b of Form 1040 or line 11b of Form 1040A.

Also, put "Rollover" next to line 15b on Form 1040 or line 11b of Form 1040A.

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