Roth IRA question
I recently received an annuity payment from my Roth IRA. The insurance Co. insisted on making the distribution to me in a taxable account, but I want to redeposit the same amount back into the IRA, essentially to reverse the distribution. Is that possible? If so, are there any IRS forms to fill out?
Permalink Submitted by Alan - IRA critic on Thu, 2019-11-07 00:02
You would have to do a 60 day rollover back into the Roth IRA, however only one such rollover for all your IRA accounts is allowed within a 12 month rolling period. If you rolled over another distribution made in the last year, you cannot roll over this one. Obviously, if these Roth distributions are made to you without at least 12 months passing between them, you will need to check to see if the insurance company can re deposit them back into the account via a “same trustee transfer” without making a distribution to you personally. Such a transfer is not reportable on a 1099R or your tax return, and there is no limit to the number of these that you can do. Alternatively, these payments could also be transferred to another IRA account if they cannot be invested back into the annuity. Perhaps you will have to open a different IRA account (annuity or otherwise) in order to do this. This answer assumes that you do NOT have an active 72t plan from this IRA annuity since such payments are not eligible for rollover or transfer.