I recently arranged for a RMD (Required Minimum Distribution) from one of my traditional ira accounts. Will the fact I took a distribution to fulfill my RMD interfere with my ability to perform an indirect rollover of another IRA which is maturing in January 2019. In other words would I run afoul with the rule of 1 indirect rollover per 12 month period? I have not done any indirect rollovers in the past 12 months.
No. The RMD and rollover are separate matters. But, why can't the rollover be direct?
replying to JoeTaxpayer, Ryan wrote: Personally I hate direct rollovers. You have no control over the speed of the transfer. I keep my IRA in bank CDs. If I direct bank A to transfer the funds to bank B, I never know how long it will take and by the time bank B receives the funds the CD deal I am trying to get might not even be offered anymore and I get stuck with a lower rate. Furthermore, you never know how many days your funds will not be earning any interest during the transfer. Banks seem to send physical checks via donkey routed through Venezuela. If you are rolling over a large sum it can cost you a lot of money. Clearly banks are making a fortune on the float here somehow so after all these years they still don't have a "press this button and your transfer is done" option for the IRA owners. That's too bad. There should be such a system. There is no excuse for there not to be these days. With the indirect rollover, you know what is going on every step of the way and have more control over it.
The RMD and rollover could be related matters if the RMD was for 2018.
The first distributions in a calendar year are considered RMD distributions (for 2019) and are not eligible for indirect rollovers.
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