A. Starting from 2015, there is a new IRS rule - you can only make one rollover of one IRA to another in any 12-month period, no matter how many IRAs you own. This limit covers all IRAs, such as SEP IRAs, SIMPLE IRAs, Roth IRAs and Traditional IRAs.
Prior to 2015, you could complete the same number of Internal Revenue Code Section 408(d)(3) transfers as the number of IRAs that you had. For example, if you had 3 IRAs you could complete one rollover for each IRA (for a total of 3) during a 12-month period.
Consequence if Violating the Rule
If you violate this new rule, you may be subject to reporting the rollover as income and a 10% early withdrawal penalty. If the distributed amount stays in the new (or same) IRA, you may be subject to a 6% tax each year.
Exception to the Rule
If the rollover is from one trustee to another trustee (“Trustee-to-Trustee Transfer”), the rollover is exempt from the new rules. This means you can conduct any Trustee-to-Trustee Transfers as you like, there is no limitation.
When rolling over your IRA, direct your trustee to make the check payable to the other trustee. Completing a Trustee-to-Trustee Transfer provides you flexibility to make additional rollovers during a 12-month period.