RMD calc
Client had IRA balances on 12/31 among multiple institutions of 1.2M But they took funds out end of DEC they thought they needed.
in early FEB they put the funds back as 60 day rollover. how do I calculate the RMD? I am assuming adding the 140k they rolled over would be easy enough, but trying to figure out what they IRS is going to require.
thanks in advance.
Permalink Submitted by Alan - IRA critic on Mon, 2025-03-10 12:35
You are correct.
They are only allowed to roll back amounts withdrawn in excess of the 2024 RMD. In that case, there is an “outstanding rollovers” rule that requires the amount rolled back to be added to the actual 12/31/2024 balance for purposes of calculating the 2025 RMD.
Client should also be made aware that only one 60 day rollover is allowed over a 12 month period, and therefore cannot roll over any future distribution taken prior to Jan, 2026.