The final DOL Fiduciary Rule, issued April 6, 2016, added another layer to the already existing, complex collection of qualified plan and IRA rollover rules.
A rollover occurs when a taxpayer takes a distribution from one qualified plan or IRA and, within 60 days, deposits it into another qualified plan or IRA. Distributions that can be rolled, either directly or indirectly, are eligible rollover distributions.
However, not every distribution is eligible to be rolled.
Notable exceptions are:
1. The life of the participant (or the joint lives of the participant and the participant’s designated beneficiary).
2. The life expectancy of the participant (or the participant and the participant’s designated beneficiary).
3. A specified period of 10 years or more.
There are other rules that you'll want to be sure you remember and take into account when making rollover recommendations to clients, too. To name a few–withholding, rolling nontaxable amounts, portability, and the 60 day rollover limit.
You're not alone with all of this. The Pacific Life Retirement Strategies Group can help you with distribution and other rollover-related rules. If you have any additional questions, please feel free to contact us at (800)722-2333, ext. 3939, or e-mail us at RSG@PacificLife.com.
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