IRA 60 day Rollover with a new Custodian
Customer took a distribution from an annuity company recently, and went to put it back as a 60 day rollover, only to find out that the annuity company would not accept reinvestments anymore. Could the client put the money in a another IRA established with a new Custodian as a 60 day rollover? He is 80+ years old. He had taxes withheld from the distribution. If he wants to do a 60 day rollover for the full distribution, can he put back the gross amount, or does it have to be the net amount?
Also, last year, he took a distribution on 9/7/12 and did a 60 day rollover on 11/5/12. His distribution this year was 9/17/13. Will he qualify for the once/year rule?
Permalink Submitted by Alan - IRA critic on Fri, 2013-11-08 21:54
Permalink Submitted by Julie Brangenberg on Tue, 2013-11-12 20:21
The client has satisfied some of their RMD, but not all. Would it be best to rollover the gross amount, and then take the remainder of the rmd later.
Permalink Submitted by Jose Morales on Wed, 2013-11-13 00:09
RMD amounts are not eligible for rollover. The client will have to keep the portion of the distribution that satisfies their RMD and rollover the remaining balance of the distribution. They cannot rollover the full amount and take the RMD later.
Permalink Submitted by Alan - IRA critic on Wed, 2013-11-13 00:16
No. The only portion of the annuity distribution that can be rolled over is limited to the amount that exceeds the rest of the RMD. If the annuity distribution is less than the remainder of the RMD, then none of it can be rolled over. The taxes that were withheld also count toward the remainder of the RMD.