Roth 60 day rollover
My 65 year old client has a Roth IRA that has been in an annuity for over 10 years (Another advisor’s recommendation). The client may need the funds but could potentially be able to return them, qualifying for the 60 day rollover. Do the funds have to go back into the same exact Roth account they originated from (The annuity) or can they be returned to any roth account.
Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2024-09-20 17:22
The distribution (or part of it) can be rolled into any other Roth IRA, but only one such 60 day rollover for all IRAs is allowed in a 12 month period. Therefore, it would be preferable to have the non annuity Roth custodian request a direct transfer from the insurance company. That does not generate a 1099R or use up the rollover. If client needs money from the Roth IRA, they can request a distribution which will be tax free since all Roth accounts are qualified.