20% withholding also has to be completed within 60 days?
A client attempted to facilitate a rollover for an old employer plan. She accidentally took the money and the company did 20% withholding. We immediately opened an IRA for her and deposited the check within the 60 day limit. She also made up the 20% withholding to make the account whole as she is under 59 1/2. Does the 20% make up amount also have to be within the same 60 days?
Permalink Submitted by Alan - IRA critic on Fri, 2020-01-10 01:15
Yes, since the distribution of the withholding and the check to the client was on the same day, the 60 days to replace the withholding starts on the day the client received the check.