One IRA Rollover Per Year Rule Interpreted by Tax Court 
Tuesday, February 4, 2014 at 12:23PM
Staff in 60 Day Rollover, IRA Roll Over, Self-Directed IRA, rIRA Rollover, self directed ira, self-directed individual retirement account

The U.S. Tax Court has taken a much narrower interpretation of the one (1) IRA Rollover per year rule in a recent court ruling than what the Internal Revenue Service has taken in its IRS Publication 590. 

In Alvan L. Bobrow et ux. v. Commissioner; T.C. Memo 2014-21; No. 7022-11, the U.S. Tax Court ruled that the one (1) IRA Rollover per year is to be interpreted on a per individual taxpayer basis and not on a per Individual Retirement Account basis, despite the fact that IRS Publication 590 interprets the one (1) IRA Rollover per year rule as applying to each Individual Retirement Account and not each individual taxpayer.

This U.S Tax Court Memorandum takes a much more restrictive interpretation of the one (1) IRA Rollover per year rule.  Although IRS Publication 590 is not authoritative and can not be used or cited as precedent, most individual taxpayers have relied upon the IRS Publication 590's interpretation because that was the only interpretation that has ever been publish until now.

Therefore, on a conservative basis, the one (1) IRA Rollover per year rule should be interpreted to mean one-rollover-per-year-per individual taxpayer, not per Individual Retirement Account, until further guidance is issued.

Article originally appeared on THE 1031 EXCHANGE INSTITUTE by The Exeter Learning Institute (
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