Executing a Year-End IRA Rollover? Beware Penalty Traps

by Prof. Robert Bloink and Prof. William H. Byrnes

As the 2024 tax year comes to a close, clients are inevitably scrambling to execute last-minute retirement related transactions prior to the close of the year. While there is no December 31 deadline for completing IRA rollover transactions, many clients will want to get the ball rolling before the new year hits. Many reasons exist for executing rollovers, including a desire to simplify planning by consolidating accounts or starting a new job in the new year. Clients who are considering IRA rollovers in the next couple of weeks should be aware of the often-confusing rules governing rollovers that are executed at the turn of the calendar year. Mistakes in timing can lead to significant penalties.

End-of-Callender Year Rollover Rules