IRA-to-IRA Rollovers―One Per Year (12 Months) Rule
As a result of the Bobrow v. Commissioner Tax Court case in which an individual was denied the tax-free rollover treatment of distributions from multiple individual retirement accounts (IRA) taken during the same 12-month period, and the IRS’s announcement that it will begin enforcement starting on January 1, 2015, Wolters Kluwer Financial Services is notifying you of our intent to update our documents to reflect the Bobrow decision and is strongly recommending that you send your customers a plan amendment and information to educate them on this change.
The impact to your customers, if uninformed, could be significant.
Recommended Action Steps
1. Review our free training that will help explain this change, its impact to you and your customers, and our recommended actions.
3. Because of the significant impact and penalties associated with this change, we are strongly recommending that you send amendments and educational materials to your customers to help them understand this change.