We needed $100k for less than two weeks during a house purchase. My husband took distributions from his two traditional IRAs on the same day, at the same time (or within a few seconds of each other), from the same trustee (Vanguard), one for $75k and one for about $25k. The funds were received within seconds of each other and then were replaced within the 60-day limit, again at the same time and back to the same accounts. He could have consolidated the two IRAs within Vanguard with a couple of clicks, and then made a single withdrawal of the full amount, but he didn’t think to do so at the time – he had read and misunderstood the statement that “all of a person’s IRAs are treated as one” for purposes of the one-year indirect rollover rule.

We’ve started looking into filing our taxes and are worried about a violation of the one-year rollover rule. Is this an issue given that both distributions were made at the same time on the same day (from accounts that could have been combined with a simple transfer), and the rollovers occurred at the same time too? If so, are we able to re-classify the $25k rollover as an early distribution and pay the associated taxes and fees, or is there some chance that the IRS decides the $25k was the valid rollover and the $75k is the early distribution? Thanks to anyone who can help!