Using 60-day rollover rules to stretch time to do Roth conversion analysis
I’m hoping to get more clarity on my 2020 tax situation before making a 2020 Roth conversion. Can I take money out of my IRA on December 25 (for example), hold it out until my tax return can be done, and then either deposit the money to a Roth (as a conversion) or back into the IRA (60-day rollover)? No – I have not used up my one rollover in the last year.
If so, could I do a combination where (for example) I take out $50k in December and I stuff $35k into a Roth and the rest back into my IRA? Would this count as two rollovers?
Thanks for any help anyone can provide.
Permalink Submitted by Alan - IRA critic on Thu, 2020-12-10 23:34
Permalink Submitted by Mark Wilson on Fri, 2020-12-11 00:20
Thank you for the quick reply! How amazing it is to have this board (and you!) as a resourse.
Permalink Submitted by Jon Erwin on Fri, 2020-12-11 05:08
I received an RMD from my Traditional IRA in February 2020. I returned it by a check to the same IRA on August 3, 2020. Does the August 3, 2020 date establish the start date for the one year rollover limitation i.e. the next available rollover date would be August 3, 2021 or later. Is the return of a 2020 RMD exempt from the one year limitation rule going forward? I had no earlier rollovers for several years prior. I have both Traditional and Roth IRAs.
Permalink Submitted by David Mertz on Fri, 2020-12-11 12:30
Permalink Submitted by David Pakiz on Sat, 2020-12-19 14:37
Can I do a rollover back to the original TIRA of 2 month’s distributions plus a withholding distribution as long as all 3 are rolled within 60 days with a single repayment?
Permalink Submitted by David Mertz on Sat, 2020-12-19 15:03
No more that one of the distributions, including its associated tax withholding, can be rolled back now. The limitation is on the number of *distributions* that can be rolled back, not on the number of rollover deposits. The deadline for repayments allowed by Notice 2020-51 was August 31, 2020 and is no longer relevant.