Excess RMD
Due to impatience on my part and delayed 2021 FMV reporting by an insurance company (IRA annuity) I exceeded my RMD by about $1300. Can some of that money be rolled back in accordance with the 60 day rule? The withdrawal came from a traditional IRA and would be returned to that account. I’m not concerned about the tax withholding. Thanks.
John in Colorado
Permalink Submitted by Alan - IRA critic on Wed, 2022-02-16 23:32
Yes, if you want to use up the one permitted rollover for a 1300 reduction in income, the gross amount in excess of the actual RMD for this IRA can be rolled back within 60 days. Of course, you must also have a rollover available to do this. Also, if only the net after withholding is rolled back, the amount withheld will still cause the taxable distribution to be more than the actual RMD.