60 Day Rollover Date for Tax Hit
If somone removes funds from and IRA with the intention of replacing it within the 60 day rollover period but fails to do so, is the tax/penalty date the date of the withdawal or at the end of 60 days?
If somone removes funds from and IRA with the intention of replacing it within the 60 day rollover period but fails to do so, is the tax/penalty date the date of the withdawal or at the end of 60 days?
Permalink Submitted by Alan Spross on Thu, 2008-11-06 16:35
Assuming the taxpayer is not eligible for any of the automatic waivers of the 60 day limit, or does not apply for a ruling requesting an exception, the taxable income is deemed received on the date of distribution.
For example, if the distribution is taken this month, even though the 60 days is not up until next year, the taxable income is reportable in 2008. For estimated tax purposes, the income is also received in the quarter the distribution is made.