60 days returning monies to IRA
If a client withdraws money from her IRA, and wants to return it within 60 days to avoid paying taxes on this distribution, is this possible if the client is taking RMD’s each year.
If a client withdraws money from her IRA, and wants to return it within 60 days to avoid paying taxes on this distribution, is this possible if the client is taking RMD’s each year.
Permalink Submitted by Alan Spross on Mon, 2011-06-27 18:31
Yes, but the RMD must be taken out first before any other distributions can be rolled over.
In other words, if the client needs temporary funds now, they first have to take their RMD out. If the RMD is not enough, they can then take out any additional amounts and roll them back within 60 days. But the rollover can only be done one time per IRA account within a 12 month period.
Permalink Submitted by Rick Tenison on Mon, 2011-06-27 19:00
Does the money have to come back in all at one time?
Permalink Submitted by Alan Spross on Mon, 2011-06-27 20:14
No, see other post.