Once-per-Year IRA Rollover Rule
Client is over 70 1/2 and will be taken their first RMD in 2018. Does this count towards the Once-per-Year IRA Rollover Rule? She would like to take out the entire remaining account balance and pay it back within 60 days. Is this allowed? Also, does she have to wait a full 12 months before she take her 2019 RMD?
Thanks,
Aaron
Permalink Submitted by Alan - IRA critic on Wed, 2018-08-22 16:40
The one rollover rule and RMDs are not related because an RMD cannot be rolled over. However, the amount she withdraws that exceeds the RMD amount is subject to the one rollover per 12 month limitation. For example, if her RMD is 10k and she withdraws 25k, she can only roll back the 15k difference as long as she has not rolled over a prior distribution in the 12 month prior period. Then, if she is able to roll back the 15k within 60 days, she cannot do another such rollover for another 12 months. Note that the 12 month period is measured from the date she receives the distribution that is rolled over, not from the date of the rollover contribution.