IRA Distribution – 60 day rollover into Roth IRA
Hello. I have a client who is 70 1/2. He took an IRA distribution today that will be more than cover his total RMD for this year. He is considering rolling the excess back into an IRA within 60 days. Can he roll it into a Roth IRA? He understands that he would have tax liability. He’s going to be taking more out this year. If not, could he convert an amount later in the year to a Roth IRA, take a distribution, and roll it back into the Roth IRA within 60 days?
Permalink Submitted by David Mertz on Fri, 2019-01-25 20:50
Yes, he can roll over to a Roth IRA the amount that is in excess of his RMD for the year for this account. Since it’s an indirect rollover, the 60-day deadline applies.