60 day rule – One withdrawal – Two subsequent deposits within the 60 day period

Submitted by RUSSELL MONTGOMERIE on Wed, 2023-04-05 20:44

Question.

Under the 60 day rule can you take one withdrawal ($10k for example) and subsequently make two deposits ($5k each) back into the IRA within the 60 day period that are done one two different dates? Does this cause any problems and or penalties?



Submitted by Alan - IRA critic on Wed, 2023-04-05 23:58

This is clearly allowed because the one rollover limitation is measured by the number of distributions made, not be the number of rollover contributions. Therefore, a single distribution could be split into several different rollover contribution amounts and date – conversely, two distributions cannot be combined into a single rollover contribution.



Submitted by RUSSELL MONTGOMERIE on Mon, 2023-04-10 18:20

Thanks



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