redepositing ROTH IRA funds – pre-591/2
If someone took a distribution from a Roth IRA (under 59 1/2), can they put funds back into the ROTH if within 1 year with or without a penalty?
If someone took a distribution from a Roth IRA (under 59 1/2), can they put funds back into the ROTH if within 1 year with or without a penalty?
Permalink Submitted by Alan - IRA critic on Tue, 2014-07-15 22:12
If not rolled over within 60 days of the distribution, it must be reported on Form 8606. The distribution may or may not be taxable and subject to penalty and cannot be replaced. However, whenever they qualify to make a new regular Roth contribution, they can do so subject to the contribution limit. Or they could also convert funds from a traditional IRA to the Roth IRA anytime they want.
Permalink Submitted by Richard Ehrlich on Wed, 2014-07-16 15:05
Thank you for your reply. to clarify, funds can’t be replaced if more than 60 days from distribution?
Permalink Submitted by Alan - IRA critic on Wed, 2014-07-16 19:01
That is correct.