60-day Rule Clarification
I have a client that was taking $10,000 monthly distributions (no withholding) while waiting on a home to sell. Now that the home is sold, she wants to return the last two distributions into the IRA under the 60-day rule (the first distributions 60 days expires on Monday). Can she return the full $20,000, or just one of the separate $10,000 distributions? Thanks for your help!
Permalink Submitted by Alan - IRA critic on Thu, 2025-09-11 13:00
Only one distribution can be rolled over within a 12 month period. The other will be taxable and perhaps subject to penalty. Both distributions cannot be rolled back. Would be preferable to roll over the first of these distributions so the 12 month waiting period will start sooner and finish sooner.