60 day rollover – > 70.5
I had an interesting question posed..
Can a T-IRA owner > 70.5 take a 60 day rollover?
My response was yes so long as their RMD is taken first. The investor would need to take his 2015 RMD first followed by a 2nd distribution which can then be rolled back into the IRA without income tax in 60 days (assuming this is his only rollover in the last 365 days)
Is this correct?
Thank you
Permalink Submitted by Alan - IRA critic on Wed, 2015-04-22 16:08
Yes, you are correct. And this applies collectively to all the IRA accounts if several are owned. The first distribution from any of them is applied to the total RMD of all of them, and the total RMD for all the IRA accounts must be completed before a distribution from any of the accounts can be rolled over. And the new 12 months rollover limitation also applies collectively to all owned IRA acccounts.