Rollover rules
Clients are married filing jointly, both under age 59
Husband took a distribution from his IRA, to serve as a bridge loan whole buying and selling a home, with intent to redeposit within 60 days. He has never taken a distribution before.
Turns out he’ll miss the 60 day deadline by about a week b/c the house won’t sell in time.
His wife has never taken a distr from her IRA. Can she take a distr from her IRA, allow him to use the funds to replenish his IRA before the deadline, then replenish her own IRA with the sale proceeds before her 60 day deadline, all without any unforeseen tax or penalty trap?
Permalink Submitted by Alan - IRA critic on Mon, 2015-11-23 22:38
This can be done as long as the one rollover limitation per 12 month period for each spouse’s IRA is not breached. Of course, each rollover must also be completed within 60 days of the distribution.