60 Day Rollover
Hello,
If I took a distribution for a gross amount of $10,000 and withheld $2,000 in taxes. Can I do a 60 day rollover for the gross amount of $10,000 or can I only roll back $8,000 since that is the amount that I received?
Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2018-05-16 14:52
Yes, you can roll the full 10k back within 60 days. If you don’t, then the 2k will be taxable and possibly subject to 10% penalty. IRA distributions have a default withholding rate of 10%, but you can increase that or decline withholding when you take a distribution.