ira problem

Submitted by b s on Wed, 2020-02-05 06:53

hello, i have a ira 6,350 i rolled over to a ira saving account and i took out the 350 for rmd. now the irs sent me a slip saying i took out the ira. but it was put back in with in the 60 day rule. what do i do to explain my problem to the irs? thank you



Submitted by Alan - IRA critic on Wed, 2020-02-05 15:55

  • You are probably referring to a 1099R, which the custodian must issue for any distribution paid to you. If you rolled 6000 of the distribution within 60 days, you report the rollover on your tax return and are only taxed on the 350 which you kept because you cannot roll over an RMD. Your 1040 would show 6350 on line 4a and only 350 on 4b. You are only taxed on the 350. “Rollover” should be shown on the dotted line next to 4b.
  • Are you aware of the one rollover limit over a 12 month period?  You can only roll over one distribution from all your IRAs in a 12 month period. That means for 12 months after the date of the 6350  distribution in 2019 you cannot roll over another distribution from any IRA. So be careful to avoid that. If you want to move money from one firm to another, do it by direct trustee transfer where the new firm requests the transfer from the old firm. You can do an unlimited number of these and they are not reported on a 1099R or on your tax return. 

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