I've run into an issue in my personal finance journey that many people now struggle with: having a collection of 401k and 403b accounts left over from previous employers, some of which have been sitting untouched for years. I'm making it a goal to finally consolidate these accounts and roll them over into a new, low-cost IRA through Vanguard. However, I recently read that for 2015 the IRS has imposed new limitations on the number of accounts that can be rolled over per year.
I've been looking over the IRS documents relevant to this new rule, but I'm not sure I understand them correctly, particularly the distinction between a "rollover" and a "trustee-to-trustee transfer."
I think I may be confused on terminology here, but am I reading correctly that if I can get my individual 401k and 403b brokers to transfer funds directly to Vanguard, this does not technically count as a "rollover?" I would prefer this situation anyway rather than having a check made out to me that I then have to deposit within 60 days to avoid taxation... Is that the scenario the IRS is hoping to avoid with this rule?
The last thing I want is to get slammed by the IRS for making an ill-informed mistake... That said, I have about 5 accounts from previous employers that I've neglected to rollover in a timely manner. The idea of rolling over one per year for the next 5 years is something I'd like to avoid if possible. Thanks for any help you can provide.