60-day rule

Client takes a $500,000 withdrawal from his IRA and returns $400,000 within the 60-day window. Will only $100,000 be considered taxable, or will the entire amount?



Only 100,000. He would report 500,000 on line 15a, 100,000 on 15b and enter “rollover” next to 15b. However, this assumes he has not breached the one rollover per 12 months rule with respect to this IRA account.



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