457 B Rollover to IRA and 60 Day Rule
A client withdrew the entire amount from his 457 B about 30 days ago and had the check mailed to him. He realized this is a mistake as he will have to pay taxes on the entire amount and this may impact his income tax brackett for tax purposes as well. Does the 60 day rule allow him to open a traditional IRA and roll the entire amount into the traditional IRA without paying taxes on the entire amount at this time or is he out of luck because he already received the check in his name?
Permalink Submitted by Alan - IRA critic on Thu, 2021-02-25 01:48
A 60 day rollover can be done, but there was probably withholding on the distribution he received which is going to have to be replaced using his own funds to have a complete non taxable rollover.