A client distributed $4700 on July 29, 2014 for cash flow purposes. She since has sold her home. I have suggested paying back the $4700 ASAP before the end of the 60 day period as she now has sufficient funds and this will save the $4,700 from taxation.
Upon calling the brokerage firm, the rep informed us that since she was over 70 1/2 she could not do this rollover. I have never heard that before and cannot find anything online to suggest that there is an age limit to the 60 day rollover rule and wanted clarification.
He also suggested that also she needed to leave the funds out as it was needed for her RMD. However, I felt that the RMD was already satisfied. She had a retirement annuity with the firm and the RMD was taken out earlier this year. For ease of access to money, the firm had moved $35,000 over to an IRA in May of this year. So when the rep looked at RMD he only showed this transaction and indicated she needed to have RMD for the IRA for this year. But I feel that since the IRA was not in existence on 12/31/2013, no RMD is needed from it. In addition, she did do the RMD on the 12/31/13 balance of the annuity which included the IRA funds.
Thank you for any assistance in the two matters.