60-day rollover involving two tax years
I’ve not experienced how a 60-day rollover initiated in November 2018 will impact the 2019 Required Minimum Distribution for a taxpayer. Her IRA has no value at 12/31/18 because of the distribution. It has now been redeposited into her IRA as of January 7th. With an IRA RMD dependent on her 12/31 account balance, what impact does her $-0- value account balance have on the 2019 RMD?
Permalink Submitted by Alan - IRA critic on Wed, 2019-01-16 00:02
It has no impact due to the “outstanding rollovers and recharacterizations” rule explained on p 7 of Pub 590 B. The 12/31 balance must be increased by the amount of the distribution that was rolled over, so the 2019 RMD will be the same as if the distribution had not been made since she rolled over 100% of it. Note that due to the one rollover 12 month limitation, she cannot roll over any future distributions taken from any of her IRAs before 12 months have passed from the date the prior distribution was received,