60 day rollover
Client over 59.5 withdrew funds of 90k and 200k from their Roth IRA 50 days ago. They now would like to use the 60 day rollover rule to put 100k back into Roth IRA. Is this allowable under IRS rules?
Client over 59.5 withdrew funds of 90k and 200k from their Roth IRA 50 days ago. They now would like to use the 60 day rollover rule to put 100k back into Roth IRA. Is this allowable under IRS rules?
Permalink Submitted by Alan - IRA critic on Mon, 2021-11-29 23:11
Only one 60 day rollover is allowed per person over a 12 month period. If these two distributions were taken from the Roth of the same person and a prior distribution was not rolled over in the past 12 months, only one of these distributions can be rolled back. To roll 100 back, it would have to come from the 200k distribution. The IRS discourages loan from IRA accounts, and taxpayers who take temporary distributions may be prone to doing this more than once a year, so client will have to check if any prior distribution taken in the 12 months prior to these distributions was rolled back.