Yes, you can roll over all or any portion of a distribution within 60 days, and be taxed on the remainder. This rollover, regardless of amount then locks you out from doing another distribution and rollover for the next 12 months. Also, note that the one rollover limit is measured by the distribution. Therefore, you could take a 40,000 distribution and roll 20,000 back within 60 days and you could also roll another 10,000 back to the same or a different IRA account within 60 days. Since there was only one distribution in this example, you are allowed as many rollovers of that 40,000 as you wish.