60 Day Rollover Inquiry
Hello,
I have a client that will doing a 60 day rollover into their IRA from a 401k they held elsewhere. The client is trying to determine what amount they should be rolling into the IRA as taxes were withheld by the client’s former employer. Should the taxes that were withheld from the 401K be included in the amount that is being rolled over?
Any help is greatly appreciated. Thank you.
Permalink Submitted by Alan - IRA critic on Fri, 2019-09-27 16:54
Yes, the amount withheld must be replaced using other money of the client to complete the rollover and avoid taxes and perhaps penalty on the amount withheld.