60 day rollover of restricted stock | Ed Slott and Company, LLC

60 day rollover of restricted stock

I think I know the answer to this but want to verify. I have a colleague who's client wants to do a 60 day rollover by purchasing restricted stock and then roll the stock back into the IRA. (the custodian won't let him buy the stock inside the IRA) Is this possible or does the deposit into a qualified plan need to be in the form of cash?

Thanks in advance

Nick

Nick, if cash is distributed from an IRA, then any rollover must also be in cash. If stock had been distributed, then a rollback would also have to be the same shares (per Pub 590 A, under "rollover from one IRA to another"). This client should consider transferring enough cash to a self directed IRA custodian who will allow the stock purchase

 

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