Roth_IRA rollover
I have a client who withdrew $34,500 form her Roth for a downpayment for a house. She ended up not needing any of it.
She is still in the 60 day window for rolling it back into the Roth.
Can she do this is two payments: $20K and $14K? or does she need to re-deposit the full amount at one time? Thanks for your help.
Susan
Permalink Submitted by Alan Spross on Tue, 2009-12-15 19:57
Two payments are OK. The one rollover rule is measured by the amount of distributions, not by the number of rollovers from that distribution. If there was only a single distribution of 34,500, it is permissible to roll it back in segments within 60 days. There is also an exception that allows the 60 days to be extended to 120 days if a purchase offer falls through or is delayed, and if that happens the entire distribution is exempt from the one rollover rule.