60 day rollover
59 and 8 month old client took a withdrawal from his TIRA 30 days ago, Has never done so in the past. His plan is to redeposit the money within 60 days of the taking it. He thinks he may miss the deadline by a week or two.
His wife (59 and 5 months old) has a TIRA and has never taken a withdrawal. Can she take a withdrawal approx 20 days from now, and husband uses that money to pay back his IRA within the 60 day window?
We understand that she then has 60 days to replenish her iRA to avoid tax and penalty.
is this all correct? What am I missing?
Permalink Submitted by Alan - IRA critic on Thu, 2024-02-22 23:57
Yes, this will work although both of them will have used up their one permitted rollover for 12 months after their distribution date. Therefore, they must be very careful over this period knowing that no rollovers will be available to either of them.