CARES act question

Submitted by Robert Roselli on Mon, 2020-04-13 18:43

I have a client that has a Traditional IRA, a SEP IRA, and Profit sharing. He took his RMDs for all the accounts. He took the required amount for each of them. It has been less than 60 days. Is the one 60-day rollover per year per account or per social security number? In other words, can he put back all three or only one?



Submitted by Alan - IRA critic on Mon, 2020-04-13 18:57

  • He can put back 2, because the profit sharing distribution is not subject to the one rollover rule, although he would probably roll the profit sharing distribution over to an IRA instead of back to that plan. The one rollover limit only applies to IRA to like kind IRA rollovers, so one of those IRA distributions cannot be rolled back.
  • However, if client happens to be eligible for a corona virus distribution, he can roll all 3 over because such distributions are not subject to either the 60 day deadline or the one rollover limit. The full eligibility requirements for a CV distribution have not been published yet by the IRS. Therefore, client could roll the 2 back now, and wait to see if the 3rd can be done later.

Submitted by Robert Roselli on Mon, 2020-04-13 19:42

Thanks for the info. How come you recommend putting his Profit sharing RMD back into his IRA not Profit sharing plan?

Submitted by Alan - IRA critic on Mon, 2020-04-13 19:49

It may be easier, but if the plan will take it back without a problem, that is fine. 

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