IRA 60-day rollover to change tax year
Quick question (I think)!
Can an investor complete a 60-day rollover using funds from the same IRA (or different IRA)? The purpose being they need the funds before year-end but expect to be in a lower tax bracket next calendar year. Ex. Take distribution toward end of Nov and repay / complete the rollover in mid-Jan using a second withdrawal from that IRA?
Assuming (not that it necessarily matters) the investor has not reached their RBD.
Thanks!
Permalink Submitted by Alan - IRA critic on Tue, 2022-11-01 00:41
Yes, this can be done, although this will exhaust their one allowed 60 day rollover for the following 12 months. Distributions taken in the year prior to the RBD are applied first to the RMD, as are distributions in and after the RBD year, and therefore such distributions are not eligible for rollover.