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Ira Rollover - Indirect

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paschalleddie1

Junior Member
What is the name of your state? PA

I needed short term funding to purchase a home and made several withdrawals from my IRA accounts. I am still within the 60-Day rollover window for all the distributions but I have some concerns since I made three (3) separate withdrawals. I need advice on any issues in rolling over the money:

The withdrawals were made as follows:

Brokerage ABC

Account 1: Traditional IRA - $25,000 Withdrawal

Account 2: Rollover IRA - $47,000 and $25,000 Withdrawals (2)

All three withdrawals were made less than 60-days ago.

Can I rollover $25,000 to Account 1 and $72,000 to Account 2? Someone at the Brokerage thought that I could only due one indirect rollover per year. I believe that I can due one per account? Can someone clear this up.

ThanksWhat is the name of your state?
 


tranquility

Senior Member
You are allowed only one per year per Code Section 408(d)(3)(B). However, the IRS is currently saying (Per Publication 590) the limitation applies separately to each IRA owned by the taxpayer.

Usually, doing what the IRS says is not going to cause special problems. Their interpretation of the code if not explained in regulations does not have the force of law, it's just how things will be done at the IRS.

Since you've already done the deed, treat it as though you can and make sure each IRAs' distribution is back within 60 days. I'd prefer you get them all back within 60 days of the first withdrawal, I don't think that is how the IRS interprets it right now. You may have a problem on IRA #2 no matter what.

(The following is not advice, just a feeling.) I'd put both withdrawals from that one back in before the 60 day limit of the first withdrawal of that account no matter what. Even then, you may have a problem. It would take research to determine the proper method to deal with it and I advise you to see someone who will do the research to determine the proper course. I'd deal with the $25,000 distribution since it's smaller and the larger is back in in 60 days no matter what. If you are prevented from rolling over that money and you put it in the account, that may be an overcontribution and you would get an excise tax. Again, I'd have to research it, but account 2 is a problem I would not know how to remedy offhand. You'll need to pay someone to spend the time to give you the advice.
 
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paschalleddie1

Junior Member
Clarification

I wanted to clarify several points that may not have been made clear. All three distributions were made from my accounts at Fidelity Investments. I have a both a Rollover and a Traditional IRA at Fidelity. I now have the available funds to rollover all three distributions ($97,000) and I can complete this prior to the 60-day period on which I received the first distribution. Doesn't it then make sense if I could only rollover one distribution, to rollover the one for $47,000 and not one of the ones for $25,000?

Any advice as to where to get qualified advice on this matter. I'm not certain that the Yellows Pages is the place to look.

Thanks
 

FlyingRon

Senior Member
I wanted to clarify several points that may not have been made clear. All three distributions were made from my accounts at Fidelity Investments. I have a both a Rollover and a Traditional IRA at Fidelity.
Doesn't matter who they are held by, and whether they were they were an original or rollover IRA.
I now have the available funds to rollover all three distributions ($97,000) and I can complete this prior to the 60-day period on which I received the first distribution. Doesn't it then make sense if I could only rollover one distribution, to rollover the one for $47,000 and not one of the ones for $25,000?
You can rollover one withdrawl from each plan. Yes do the larger one when you have multiples. You can not roll into either of the plans you withdrew from. As I said, the answer is to go anywhere Fidelity, or your local bank or credit union and create a new IRA and roll into that. As you are realizing it was a mistake to do two withdrawls.
Any advice as to where to get qualified advice on this matter. I'm not certain that the Yellows Pages is the place to look.
Fidelity might be one place to start since you appear to have a relationship with them. Otherwise, the general way I have found is to ask around for personal references. Don't let your 60 days go by however.
 

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