IRA distributions and rollovers
I have a client who is 60 and taking normal distributions from her IRA for living purposes. She needs an additional $100,000 for a 1 month period to buy a home and will be able to deposit the $100,000 back with 60 days. Will they $100,000 be able to not be counted as income this year if she follows the 60 day rule?
Permalink Submitted by Alan - IRA critic on Fri, 2013-03-01 19:20
Yes, it would be a reported rollover on line 15a and 15b. There is only one such rollover allowed within a 12 month period, so if she took a distribution from this IRA in the last 12 months that she also rolled over, she cannot do another until the 12 months is over. The 12 months is measured from the date of the prior distribution that was rolled over.