60 day rollover rule

In 2005 I took a distribution from my IRA with no tax withheld with the intent of putting it all back within the 60 days. I did do this however my
1099-R shows just the distribution but nothing shows my rolling the monies back in. Thus I was taxed on the distribution. Was I wrong to assume that as long as I put the monies back within 60 days I would not be taxed?



The IRS is just questioning your 2005 return now?

The 1099R is correct as is. However, there should be a Form 5498 issued showing the reciept of the rollover contribution and both you and the IRS should have received that.

Further, even if the above is in order, you needed to report the rollover on your 2005 return on line 15 with the 1099 R distribution on 15a, -0- on 15b and “Rollover” entered next to 15b. If you did not do that, the IRS may question this even if they have the 5498 on record.

You are right that a rolled over distribution should not have been taxed. Looking at the above, perhaps you can identify why the IRS thinks it should be taxed.



Add new comment

Log in or register to post comments