IRA 60 PROVISION
With regard to the below IRS provision, how does one reconcile on the return the amount that was rolloed back over into an Ira within 60 days if the 1099-r shows it as a total taxable distribution? Is there an ammendment form that is used to accompany the return?
Take a 60-Day Loan
You can withdraw funds from your IRA for up to 60 days tax- and penalty-free as long as you return the funds to an IRA by the end of the 60-day period. The IRS looks at this as a nontaxable rollover. Just make sure that the funds are back in an IRA within the 60 days, otherwise it will be treated as a withdrawal that is subject to taxes and penalties. Also, if you follow this strategy, you can only do it once within a 12-month period for the account in question.
Permalink Submitted by Alan Spross on Fri, 2008-02-29 18:16
It’s very simple. Report the amount shown on the 1099R on line 15a of Form 1040, enter -0- on 15b and “Rollover” next to 15b. The taxable amount will therefore be -0- as you are reporting the entire amount rolled over. Inherent in doing this is that you did it within 60 days and you are not in violation of the one rollover per IRA account rule. No special forms are needed.