For many people, this rule doesn’t present much of a problem. However, violation of the IRS’s one-rollover-per-year rule can cause the extra rollovers to be treated as taxable distributions. You may also be assessed a 10 percent penalty, and your rollover funds could be treated as excessive contributions taxed at 6 percent per year as long as they stay in your rollover IRA.
Account owners must begin making distributions from their accounts by April 1 of the calendar year after turning age 70 1/2 or April 1 of the calendar year after retiring, whichever is later. The amount of distributions is based on life expectancy according to the relevant factors from the appropriate IRS tables. For individuals who attain age 70 1/2 after December 31, 2019, distributions are required by April 1 of the calendar year after turning age 72 or April 1 of the calendar year after retiring, whichever is later.