IRA rollover

Submitted by james nichols on Sat, 2017-10-14 17:02

I am 71 with a $100,000 traditional IRA. If I do a total withdrawal on Dec. 30, 2017 and do a rollover on Feb. 26, 2018 with a deposit of $70,000 is my $30,000 taxable in 2017 or 2018? Also, can I do this rollover even though it spans 2 fiscal years and I am already taking my RMD?



Submitted by Alan - IRA critic on Sat, 2017-10-14 20:17

  • The 30k will be taxable in 2017, the year of the distribution. You will get a 1099R for 100k, and will indicate “rollover” on Form 1040 next to line 15b. Only the 30k taxable amount goes on 15b. 
  • The 30k you did not roll over will be applied against your RMD for this IRA account if you did not take the RMD earlier. And it can also be applied against your RMD for any other TIRAs you have as well, if those other accounts did not distribute their own RMD.
  • It does not matter that the rollover contribution will be done in 2018, other than the 5498 year will not match up to the 1099R amount. But the IRS is used to that. 
  • Note that you can only do one 60 day rollover for all your IRA accounts within a 12 month period. Therefore, if you took a prior distribution after 12/30/2016 that was rolled over, you will not be able to roll over any of the 12/30/2017 distribution.

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