60 day rollover
I know the details get complicated on this, so wanted to double check.
First question – My client took out funds in March from her IRA and “contributed” the exact amount in May within the 60 days.
The closing on selling her house after that was delayed, so she needed to take out some more.
Could she do another “contribution” within 60 days or has she used up her once a year limit?
Second question – if a client took out more than one distribution within the last 60 days, can they “contribute” the total or do they have to pick just one of the amounts?
Thanks for your help.
Permalink Submitted by Alan - IRA critic on Fri, 2017-07-21 17:43
The May rollover used up her one permitted such rollover for 12 months, therefore later distributions cannot be rolled over. Q 2 seems to reflect a different scenario, but the one rollover rule is based on the number of distributions and more than one distribution cannot be combined into a single rollover. Therefore if only one distribution can be rolled over but two distributions are outstanding, the taxpayer can choose which one to roll over.