multiple indirect IRA rollovers
I took out a cash withdrawal in 2017 of $7000 from my Traditional IRA (with a bank), and returned
it within 60 days, which was classified as an IRA rollover.
Later, I took out a 40,000 cash withdrawal from one of my 403(b) plans. Now I have tax reasons
to want to rollover a portion of this amount ( $34,000) back into my bank IRA before the end of 2017.
Would this violate the IRS rule for only one rollover in 12 months time ?
If I cannot roll to the same bank IRA, would a partial rollover of the $34000 to another IRA
I have at a Credit Union, before the end of 2017, be permissible ?
Permalink Submitted by Alan - IRA critic on Fri, 2017-12-22 20:31
Distributions from a 403b or other employer plan are NOT subject to the one rollover limitation. Therefore you can complete the rollover to any IRA account you wish as long as you do it within 60 days from the date you received the 40,000. Note that there should have been 20% withheld from this distribution, so you better check to determine if the gross distribution wasn’t 50,000, with 10,000 going to the IRS as mandatory withholding and 40,000 to you. If so, the taxable amount would be 50,000 less the amount you actually roll over. Please advise, if questions.