60 day IRA rollover
First year RMD.
In December, client took and RMD distribution from his IRA.
Subsequent to the distribution, clients CPA recommended he not take a distribution in 2019. CPA recommended client take two distributions in 2020.
Called the custodian and asked if we could do a 60 day rollover back to the IRA account.
Custodian told us about an IRS reg that does not allow a 60 day rollover of the RMD amount. I have also seen that discussed in this forum.
I was wondering if there is a work around since the client was not actually required to take the RMD in 2019 if he chose to take two distributions in 2020 beginning on April first?
Permalink Submitted by Alan - IRA critic on Fri, 2020-01-03 23:24
Custodian is correct that an RMD cannot be rolled over. The only possibility of a rollover is remote, but if the RMD that was distributed included the RMD from other IRA accounts that the client owned, the portion of the distribution that was the RMD for the other accounts could be rolled over. But for this relief, client would obviously have needed to own at least two IRA accounts, and planned to take the total RMD from the account that made the distribution. Otherwise, the distributed amount is taxable in 2019 because in an RMD distribution year, any distributions taken are applied first to the RMD.