RETURN OF IRA WITHDRAWALS
I have an IRA which was rolled over from a 401k plan. I am 68 so RMD from the IRA is not in play yet. I make voluntary periodic withdrawals on a monthly basis with 10% Federal and 5% state withholding. If I was to come into a sum of money [say from gambling or inheritance] such that I didn’t need the funds from the IRA, is there ANY mechanism by which I could return all of withdrawn funds back to the IRA? I understand that I’d also have to return the withheld amounts and recopu them at tax filing time in 2016.
Permalink Submitted by Alan - IRA critic on Fri, 2016-04-01 18:08
You are only allowed to roll back an IRA distribution within 60 days of receipt, and you can only do one such rollover for all your IRA accounts within a 12 month period. Therefore, the amount you could rollback is limited.