IRA Rollovers in 12 mo period
Did I make a mistake? Took an IRA distribution personally and then rolled it all into a new IRA within 50 days (think I’m good there). 2 weeks later, I rolled out of my new IRA and into my employer’s qualified retirement plan. Do I have a tax problem? Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2013-02-05 22:07
No problem here. The one rollover limit only applies to IRA to IRA rollovers. It does not apply to rollovers FROM an employer plan to an IRA or to a rollover from an IRA to an employer plan.
Permalink Submitted by Ed Dedon on Tue, 2013-07-02 20:37
What if two distributions were taken from the IRA and within 60 days of the first distribution the total of both distribution is rolled back into an IRA? Does that create a tax problem? Is it the rolling over or the distribtion taht counts for the one occurrence per year?
Permalink Submitted by Alan - IRA critic on Tue, 2013-07-02 22:25
The number of distributions count. See other thread for examples.
Permalink Submitted by Gordon Schram on Wed, 2013-07-03 15:33
I withdrew $10,000 too much from my regular IRA and did not get it into my newly established Roth IRA in 2012. All money was reported on my 1040. No proboem with the Fed., however my township will stated I made too much money and disallowed my Senior Citizens Assessment Freeze Exemption for 2013. I want to know, if we re-do my 1040 and show the $10,000 as funded in my new Roth IRA and since the Fed tax has been paid will this now reduce my RMD by $10,000. ? The Roth IRA was established in 2012 however not fundedThank you Gordon Schram
Permalink Submitted by Alan - IRA critic on Wed, 2013-07-03 18:56
It is too late to roll over your 2012 distribution including a Roth conversion. However, since a Roth conversion would generally show as taxable income on your return it is likely that your assessment would have risen either way. With respect to your RMD for 2013, since your 10k distribution reduced your year ending balance for 2012, your RMD for 2013 will be somewhat lower as a result. If you still want to fund your Roth IRA this year through a conversion, note that you must complete your 2013 RMD distribution before you can convert any amount to your Roth IRA. You can then convert any additional amounts you wish to. Meanwhile, you should check with your town to determine if they just look at bottom line Form 1040 AGI or whether they subtract any conversions from the amount they use to determine your assessment.