60 day rollover and additional distributions in current year
A client who is over 59 1/2 is looking at utilizing the 60 day rollover. It sounds like they can extend repayments until 07/15/2020? Also, my question is if they repay the funds back into their IRA (they only have one) can they still take a distribution later in the year and just pay taxes on it without messing up the funds they put back within the 60 day window?
Thank you for your help in advance.
Permalink Submitted by Alan - IRA critic on Fri, 2020-04-17 17:55
Yes, the current rollover has no effect on future distributions. But it does result in a 12 month waiting period before a later distribution can be rolled over. Therefore, if they take another distribution later this year, that is OK but they will not be able to roll the second distribution to a TIRA account, but they could roll it to an employer plan or to their Roth IRA. The waiting period only applies to IRA to the same type of IRA rollovers.
Permalink Submitted by Brian Smith on Fri, 2020-04-17 18:30
Thank you!