60 Day Rollover
If a client takes 2 withdrawals from an IRA account
Example:
June 20th $1,000
July 20th $1,000
Are they able to write a check back for $2,000 as a 60 day rollover from the first withdrawal? So by Aug 20th
If a client takes 2 withdrawals from an IRA account
Example:
June 20th $1,000
July 20th $1,000
Are they able to write a check back for $2,000 as a 60 day rollover from the first withdrawal? So by Aug 20th
Permalink Submitted by David Mertz on Mon, 2020-07-20 20:11
Assuming that neither of these distributions qualifies as a Coronavirus-Related Distribution and neither of these would have been an RMD were it not for the CARES Act, only one of these two distributions can be rolled back into the IRA without violating the limitation that allows only one distribution to be rolled over from an IRA to an IRA in a 12-month period. The other could instead within 60 days be deposited into a Roth IRA as a taxable Roth conversion or could be rolled over to qualified retirement plan like a 401(k) if the client has a qualified retirement plan that will accept the rollover since either of these is disregarded with respect to the one-per-12-months rollover limitation.