60 day rollover clarification – 1 distribution, 2 deposits?
Is this transaction ok or will it be a problem?
person takes $100,000 from IRA as a 60 day rollover (bridging the gap on house closings). No tax withholding. within the first 10 days they put $80,000 back and by day 50 put the remaining $20,000 back.
All transactions took place from the same IRA. There was 1 distribution but 2 deposits, but the same dollars if you will.
does that meet the 1 rollover rule or is the 2nd deposit going to be ineligible and thus taxable income?
Permalink Submitted by Alan - IRA critic on Thu, 2020-07-02 18:46
The one rollover rule is based on the number of distributions, and there was only one distribution here. Therefore, as long as the 60 days are met, there is no limit on the number of rollover contributions the person can do. This situation turned out OK, but when rollovers are based on the timing of real estate closings which can be delayed for any number of reasons, many people get burned and fail to meet the deadline.