Retirement Savings and Benefits
Questions and comments about IRAs, 401k accounts, social security, and other forms of retirement savings and benefits.
IRA 60 day rollover
Posted by: motax, April 11, 2017 06:09PM
Have a question regarding the repayment of a distribution within the 60 days.

Assume following distributions:

4-1-2017 $30,000
4-4-2017 $5,000
4-8-2017 $4,000

Can I pick which one I am going to repay assuming I do it within 60 days of the distribution date? If I pick the $30,000 on 4-1-2017, does the fact that I took out distributions subsequent to that matter?

Also, I assume I can only repay one of the three. Correct?

Thanks

Re: IRA 60 day rollover
Posted by: Alan S., April 11, 2017 06:20PM
You could roll over the 30k as long as you have not done a prior rollover in the last 12 months since you are only allowed one in a 12 month period. Yes, you can pick the one you want to roll over.

If you want to roll them all back, there is also a more indirect way:

1) Roll back the 30k
2) Convert the 9k to a Roth IRA
3) If you do not want to keep the taxable conversion, recharacterize it back to your TIRA. Roth conversions and recharcteriztions are NOT subject to the one rollover in 12 months limit.

Re: IRA 60 day rollover
Posted by: motax, April 11, 2017 06:32PM
Thanks for the info.

Is there a time limit for the conversion to a Roth IRA?

Re: IRA 60 day rollover
Posted by: Alan S., April 11, 2017 11:20PM
Within 60 days of receiving the distribution to be converted. Recharacterization of the conversion must be done by 10/15 of the year following the conversion year if you decide to recharacterize. If the conversion generated enough earnings, you might decide to keep it.



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