60 DAY RULE – TWO WITHSRAWALS IN CALENDAR YEAR
I have a client who withdrew a sizeable amount of funds from his SEP-IRA on November 11th, 2008.
His intention is to replace the funds within 60 days (January 11th, 2009).
He asked what restrictions he would have if he wanted to again withdraw some of the funds in 2009.
I know that we discussed this topic in Ed’s workshop and I have seen it in his newsletter. However, I can’t find the answer.
Any assistance you can provide would greatly be appreciated.
Respectfully yours,
Bernard A. Fagnani CPA/PFS
Permalink Submitted by Alan Spross on Fri, 2008-12-12 20:41
There is a one rollover limit per 12 month period per IRA account. The calendar year is not a factor as the 12 month period starts with the date of distribution. Therefore, client cannot take another distribution that he intends to roll over until 11/12/2009. He must also return the current distribution by 1/10/2009, which is the 60th day after the date of distribution.
Of course, looking backward, client also needs to be sure he was eligible to make this rollover distribution by not having another prior rollover after 11/10/2007.