60 day Rollover IRA Rule Update
My client is 83 years old with a sizeable IRA that I manage. He has already taken his RMDs for 2025.
He wants to do a sizeable withdraw and has promised to return it within 60 days. I have explained that if he exceeds the 60 days then the amount is taxable 100%. Is there an age limit when it comes to this rollover?
Can he still do this transaction this year? Do you see any issues that I have not covered?
Permalink Submitted by Alan - IRA critic on Wed, 2025-02-12 14:55
Age is not a factor. Any distribution taken after the total RMDs for all IRAs has been completed can be rolled over in whole or in part within 60 days of receiving the distribution. However, this can only be done once every 12 months. That means if any distribution taken in the 12 months prior to the proposed distribution was rolled over, he cannot roll over the proposed distribution.
Likewise, if the proposed distribution or any part of it is rolled over, he will be blocked from doing another rollover for 12 months after the proposed distribution.
Permalink Submitted by Vickie Intriago on Sun, 2025-02-23 17:31
Above client completed 2 trustee to trustee transfers in August 2024. I am assuming that these do not count as the rollovers you mentioned in above examples.
Client never took possession of the funds. Please advise he can still do the 60 day rollover .