Can two distributions be rolled over using the 60 day rule
A client took two distribution one for $5000.00 on Feb 5 and one for $80,000.00 on Feb 10. They are still in the 60 day window. Can they roll beck in $85,000.00 or is that breaking the rule of only one roll over in 12 months?
Permalink Submitted by Alan Spross on Sat, 2008-03-08 02:13
It’s one or the other, so obviously they would opt to roll back the 80,000.
The rule says if you make a tax free rollover of a distribution, you cannot make another of a later distribution. The problem is having the two different distribution dates, and it cannot be solved by having a single rollover date.
Here’s the wording in the code:
(B) Limitation
This paragraph does not apply to any amount described in subparagraph (A)(i) received by an individual from an individual retirement account or individual retirement annuity if at any time during the 1-year period ending on the day of such receipt such individual received any other amount described in that subparagraph from an individual retirement account or an individual retirement annuity which was not includible in his gross income because of the application of this paragraph.