Tax Reform and 60 day IRA Rollover
A colleague had mentioned to me that the recent tax reform/jobs act somehow did away with the ability to take a distribution from your IRA utilize the funds and then roll back into the within the 60 day period with no consequences…I was not able to locate any documentation of this provision being removed from the IRA regulations. Can anyone comment and point me in the right direction if this sounds familiar? Thank you
Permalink Submitted by Alan - IRA critic on Fri, 2018-11-09 00:49
That information is incorrect. The TCJA did not change the rollover rules, but did eliminate the ability to recharacterize a Roth conversion done after 2017. Starting in 2015, only one such 60 day rollover is allowed in a 12 month period per an IRS change of interpretation of the rollover rules. Presently, it is still possible to do that one 60 day rollover as long as an earlier one wasn’t done in the prior 12 months.