IRA Loan, partial reimbursement
If client borrows $25,000 (no withholding) from her IRA then, before the end of 60 day window, uses $10,000 her husband borrows from his IRA to partially return money to her IRA, will only the unreimbursed funds from her IRA be subject to taxes (she is post 59 1/2)?
Thank you!
Permalink Submitted by Jose Morales on Wed, 2015-04-01 16:01
The outstanding $15,000 from the original $25,000 distribution will be taxable income. Unless the husband can come up with $10,000 to rollover into his IRA within 60 days that will also be taxable income, putting you back at $25,000 as taxable income for the year.