Completing a Rollover if taxes withheld | Ed Slott and Company, LLC

Completing a Rollover if taxes withheld

A client took funds from an IRA, taxes were withheld, she rolled back the after tax amount. Can she roll the amount representing the tax at a later date?

Yes, but still not more than 60 days after the client received the distribution. There is an exception to the 60 day time limit per Notice 2020-51 if the first distribution would have been an RMD for 2020 if not for the RMD waiver. In that case client has until 8/31 to return the withheld amount to the IRA account that funded the distribution, even if that distribution dated back to January, 2020.

 

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