60-day rollover

Submitted by Robert Roselli on Fri, 2023-02-03 23:47

Our client needs to get $ 452,000 wired to him in short order. Due to a lack of standing instructions on file, the custodian will only allow us to move $ 250,000 per day without standing instructions. I can move $ 250,000 on Monday and another $ 202,000 on Tuesday. Does this violate the 60-day rollover rule? I know there is something about one 60-day rollover every 12 months. Does that have to do with putting the money back or taking it out?

When our client sells his property, he will place the entire $ 452,000 back in the IRA. Will the IRS allow the entire amount to be counted as a 60-day rollover, or will allow one of the distributions to be put back?



Submitted by Alan - IRA critic on Sat, 2023-02-04 00:17

The one rollover limitation is applied per distribution, not by the rollover contribution. Is the custodian dollar limit applied to all distributions or just wired funds?  If just to wired funds, client needs to receive the funds by the next fastest method, perhaps by a single check for the total. Depending on the purchase/sale dates of property to fund a rollover frequently leads to disaster since real estate closings are subject to too many contingencies. Worse yet, the IRS has no authority to waive the one rollover limitation. 



Submitted by Robert Roselli on Mon, 2023-02-06 12:32

is very Operationally challenged. The client doesn’t have standing instructions for wires. If I go to establish them, I must first enter his email in the database. Then, the custodian places a 5-day hold on using the standing instructions. He needs the money ASAP so that won’t work. We have the asset movement authority to move up to $ 250,000 per account without standing instruction so operationally, we can make It happen by transferring 202,000 from his IRA to his brokerage account. Then, I can wire 250,000 from his IRA and 202,000 from his joint account. However, the 1099 would show a wire out on 2/6/23 and a distribution to his brokerage acct on 2/6/23. I can wire all the money to him on the same day, but it will be 2 distributions from his IRA,



Submitted by Alan - IRA critic on Mon, 2023-02-06 14:41

  • There’s a gray area with respect to two distributions on the same day from the same IRA. If the intent is to roll the 452k back to this same IRA, assuming that the real estate sale even closes within 60 days, you might ask the IRA custodian if they will treat the two distributions made on the same day as a single distribution. 1099R forms do not show dates, just a total of all distributions from the IRA in the calendar year. Be sure to talk to someone at the custodian who fully understands the issues here.
  • If the custodian will not treat two distributions made on the same day as one distribution, client could open another IRA elsewhere and roll the total back to the new IRA if the distributions are made on the same day.
  • If they are not made on the same day, if client participates in a workplace plan that accepts IRA rollovers he could roll one distribution back to the IRA and the smaller one to the employer plan. Most plans hold these rollovers in a separate sub account and it could probably be rolled back out to an IRA later on while still employed there.
  • If that is not possible either, client would be faced with tax and penalty (if  under 59.5), and if so could roll the smaller distribution to a Roth IRA. Taxes would still be owed, but no penalty, and the funds would still be tax deferred and tax free once the Roth is qualified, plus no RMDs. Still a bad outcome but better than just living with the distribution in his taxable account.
  • Or – perhaps his realtor could arrange a last minute bridge loan to eliminate the IRA involvement?
  • Hopefully client understood the risks of these transactions before he made these decisions.


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