Following a Tax Court ruling, the IRS has announced that it plans to issue new regulations that will limit nontaxable IRA rollovers to one per year, no matter how many IRAs a taxpayer has. The single year period consists of 365 days (366 if a leap year is included) from the distribution, and is not tied to a tax year or calendar year.

In January 2014, the Tax Court ruled that the one-per-year limitation, which had been applied to any single IRA, instead applies to all IRAs maintained by an individual taxpayer. It will no longer allow multiple nontaxable rollovers from multiple IRAs.

The current regulations will remain in effect for IRA distributions made before January 1, 2015, to allow IRA trustees time to adjust their filings and notification process to the new regulations.

The tax treatment of retirement accounts can be complex, and you should not make any decisions before first consulting with a qualified tax professional. For information on IRA rollovers and other tax-related questions, please contact us.