taking money out of IRA
Just wanted to check on this situation to see if there any strategies that I am not aware of that might apply…
Client who is 78 yrs old wants to give or loan money to his nephew and take the money from his IRA (about 100K). Is there any way to not make this a taxable distribution other than putting the money back in within 60 days?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2019-03-21 18:33
No, if not rolled back within 60 days it will be taxable. In addition, if he has not already taken out his 2019 RMD, this distribution will be credited to his RMD. If he then receives the money back and is eligible to complete the rollover, he can only roll back the excess of his RMD. Finally, if he has done a 60 day rollover in the past 12 months he will not be able to roll any of the money back. Hope client has thought through this carefully.