60 Day Rollover and RMD
Client aged 78, took full $25k RMD in November 2022 from Trad IRA. Custodian/Advisor mistakenly sent him an extra $10k on the last day of the year from same IRA.
My question is, can we do a 60-day rollover and roll the $10k back into the IRA before we take the RMD in 2023? Or will he need to first take this year’s 2023 RMD before he can roll it back into the IRA. Or just too bad none of this works, enjoy the $10k, pay the taxes, and move on.
Permalink Submitted by Alan - IRA critic on Thu, 2023-01-05 17:32
Be sure that this 10k was distributed in 2022 and will be included on the 2022 1099R. If so, then a 60 day rollover can be done without regard to the 2023 RMD, as long as client has a 60 day rollover available. And even if client does have a rollover available, they would be restricted for the next 12 months from doing another one. It may be a hassle, but perhaps client should return the check to the custodian and ask that it be cancelled and NOT reported on the 1099R. That will save his rollover for other emergencies, including the re occurrence of this situation this year.
Permalink Submitted by EDWARD CREEGAN on Thu, 2023-01-05 21:28
Thank you, I really appreciate your reply. This is what I thought but was getting all in my head about distribution ordering with the calendar years straddled.