60 day Rollover
Client takes a gross distribution of 30,000 and withholds 10,000 for taxes at Nov 30. Plans on another gross distribution of 15,000 in early Jan, 2016 but wants to put back some of the 30,000 within the 60 days.
Can he put back 15,000 of the 30,000 by Jan 30 so he is only taxed on 15,000 in 2015 and then taxed in 2016 on the other 15,000?
Thanks
Permalink Submitted by Alan - IRA critic on Tue, 2015-12-15 21:07
Yes, providing he did not rollover any other distribution taken in the 12 months prior to 11/30/2015. If he is therefore able to roll back any part of the 30k distribution taken 11/30, then he cannot roll back any part of the early January distribution or any other distribution he takes prior to 11/30/2016. In other words, the new one rollover limitation for all owned IRA accounts seriously limits the frequency of “borrowing” from your IRA account.
Permalink Submitted by Charles Bailey on Tue, 2015-12-15 23:27
Thanks, yes, no other rollovers for the past 12 months from Nov back and does not plan any other rollovers.
Permalink Submitted by David Mertz on Tue, 2015-12-15 21:28
The 60-day rollover deadline for a distribution received on November 30 would be January 29, not January 30.
Permalink Submitted by Charles Bailey on Tue, 2015-12-15 23:28
thanks