Excess IRA Distributions
Company where 401K resides made 3 excess RMD’S. Two occurred the same day, and one on a different day. Can I write a check for this aggregate “excess” and deposit it ( essentially do a rollover ) into an existing IRA a/c as long as I’m within the 60 day rule on all 3 excess payments?
Permalink Submitted by Alan - IRA critic on Fri, 2013-04-19 17:47
Yes, you can. It’s odd there would be 3 RMDs issued by the plan. However, any amount in excess of the actual RMD can be rolled over within 60 days of receipt.
Permalink Submitted by Mel Langer on Fri, 2013-04-19 19:54
Without being funny, yes it’s odd, and shows how screwed up some firms are. Just want to make sure I can do this, because I read somewhere that you can only take ONE distribution and return it within a 60 pay period. Although I want to be very clear that I did not request these excess distributions, or in any way cause this problem.So again, if the 3 separate excess distributions total say $9,000, then I can just write one check for $9,000 and put it into an existing IRA?
Permalink Submitted by Alan - IRA critic on Fri, 2013-04-19 23:04
Yes. You are referring to the one rollover rule per 12 month period. That only applies to IRA to IRA rollovers. Your is a 401k to IRA rollover and those are unlimited.