IRA w/d for 60 days
A Client wants to w/d $25,000 from his Simple IRA and return the money with 60 days. Any coution regarding this w/d?
Please advise
A Client wants to w/d $25,000 from his Simple IRA and return the money with 60 days. Any coution regarding this w/d?
Please advise
Permalink Submitted by Alan - IRA critic on Mon, 2015-02-23 16:46
Yes. Client is only allowed one IRA rollover in a 12 month period, so after he does this rollover he cannot do another one for 12 months. And if he has not participated in the SIMPLE IRA for 2 years, the rollover can ONLY be made to another SIMPLE IRA, not back to the SIMPLE IRA from which he took the distribution. Therefore, his options are more limited in the first two years than afterward.
Permalink Submitted by Eduardo Arenas on Mon, 2015-02-23 19:21
thank you for your input very informative.
Permalink Submitted by Eduardo Arenas on Mon, 2015-02-23 19:27
the client is taking his RMD and he is not contributing to his Simple IRA For more than two years. He needs the money for 40 days only does he has to open another Simple IRA still To return the money? Thanks.
Permalink Submitted by Alan - IRA critic on Mon, 2015-02-23 19:50
If the distribution is an RMD it cannot be rolled over at all. If client has different non Roth IRAs, the RMDs can be aggregated between them in any combination. Since he is RMD age, the first distribution taken from ANY of these IRAs is considerd to be an RMD not eligible for rollover. Therefore, if this distribution is NOT an RMD because the total RMD was satisfied from any other IRAs he owns and since his SIMPLE IRA has existed over 2 years, he could roll a distribution back within 60 days to the same SIMPLE IRA subject to the one rollover rule mentioned above. If his total RMD was 10k and he withdrew 25k, he could roll back the difference of 15 since the 15k is not an RMD.