Consolidate 2 IRA redemptions into one Rollover?

A client has 2 IRA’s; she took RMD distributions from each on 9/1/2020. Now, she didn’t need the money so she’d like to put them back in since there are no RMDs for 2020. One of the distributions went to her NQ account, the other went to her bank. Can she total the distributions from both IRAs and “rollover” money from her NQ account to one of the IRA’s to wipe out the tax liability?



No. Due to the one rollover limitation per 12 month period she can only roll back one of these distributions over to the IRA account of her choice. Presumably, she would roll over the largest distribution. She does have the option of converting the other distribution if she wants, since she will be taxed on it either way. Note that rolling back even one of these distributions is only allowed if she did not roll over any previous distribution taken 9/1/2019 or later, and by rolling over one of these she is also precluded from rolling back any other IRA distribution (conversions excepted) for the 12 months ending 9/1/2021.



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