60 day rollover if over age 72?
If client is RMD age (over 72) and needs additional funds over and above RMD for this year, can he do a 60 day rollover after taking the RMD? Or is there an age limit or rule preventing folks in RMD status from doing a 60 day rollover? Any details about how to do a 60 day rollover for an RMD-aged person is appreciated. The funds will be used to buy real estate. Thank you for any info.
Permalink Submitted by Alan - IRA critic on Wed, 2021-03-31 20:53
The rollover rules are the same at any age, but once RMDs begin the RMD must be completed before any distributions are rolled over. The one rollover limit over a 12 month period continues to apply, so if client rolled over another distribution in the prior 12 months, they are not eligible for another rollover until the 12 months has elapsed.
Note that rollovers tied to real estate closings are very risky because all sorts of things can happen to delay a closing. But if client is just buying and not selling as well, there is no incoming funds to be late. But client may still need loan approval to be able to complete the rollover.
Finally, the rollover limitation per 12 months applying to the distribution, not the rollover contribution. SInce only one distribution can be rolled over, client might want to take a larger distribution since client can always return funds as long as there was only one distribution.