Memo from the Internal Revenue Service to retirement investors: Be careful with those individual retirement account rollovers.
That's the gist of a recent IRS ruling that puts new restrictions on the number of "indirect rollovers" from one IRA to another you can do annually. The ruling comes on the heels of a federal court decision in January in which a complex strategy involving multiple rollovers executed by a New York City tax attorney, Alvan Bobrow, and his wife, Elisa, was disallowed. They were hit with a $51,298 income tax bill and a penalty of $10,260.
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