IRA 60 day Rollover with a new Custodian

Submitted by Julie Brangenberg on Fri, 2013-11-08 20:24

Customer took a distribution from an annuity company recently, and went to put it back as a 60 day rollover, only to find out that the annuity company would not accept reinvestments anymore. Could the client put the money in a another IRA established with a new Custodian as a 60 day rollover? He is 80+ years old. He had taxes withheld from the distribution. If he wants to do a 60 day rollover for the full distribution, can he put back the gross amount, or does it have to be the net amount?

Also, last year, he took a distribution on 9/7/12 and did a 60 day rollover on 11/5/12. His distribution this year was 9/17/13. Will he qualify for the once/year rule?



Submitted by Alan - IRA critic on Fri, 2013-11-08 21:54

  • Yes, assuming his RMD had previously been satisfied, he can open a new IRA or use another existing IRA account and roll the gross distribution (replacing the withholding) over within 60 days of receipt.
  • Fortuneately, the 12 month one rollover limit is measured from the date of distribution. Therefore, he can complete the above rollover since the current distribution was more than 12 months since the prior distribution.


Submitted by Julie Brangenberg on Tue, 2013-11-12 20:21

The client has satisfied some of their RMD, but not all.  Would it be best to rollover the gross amount, and then take the remainder of the rmd later.



Submitted by Jose Morales on Wed, 2013-11-13 00:09

RMD amounts are not eligible for rollover.  The client will have to keep the portion of the distribution that satisfies their RMD and rollover the remaining balance of the distribution.  They cannot rollover the full amount and take the RMD later.



Submitted by Alan - IRA critic on Wed, 2013-11-13 00:16

No. The only portion of the annuity distribution that can be rolled over is limited to the amount that exceeds the rest of the RMD. If the annuity distribution is less than the remainder of the RMD, then none of it can be rolled over. The taxes that were withheld also count toward the remainder of the RMD.



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