IRA Rules

Question: I took money out of an IRA last month, but I want to roll some of it back into the same account.?

Am I allowed to roll it back into the same account, or do I have to roll it into another IRA account in order to satisfy the IRS 60 day rule for not being taxed on an IRA Withdrawal?
Caveat Emptor, I only want to put some of it back into an IRA. I searched the internet and I didn’t find anything that required me to put the whole amount back in. I realize there are taxes and penalties on the part that is a permanent withdrawal. Do you know of any site that says that I am required to put the full amount back in?

Answer: Dear Cissy: Either works but I would NOT open a new account as the new trustee can not help you with coding the roll over and the original trustee will not know about it.

Roll over the money to the original account and pray they code it correctly on your 1009-R next year. If it is not coded correctly it can be reported correctly on your tax return but I guarantee letters will be generated from the IRS, a real big pain in the you know what. I have written several letters this past year to try and explain the r/o monies. You are on target with the 60 day rule.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more Errol Quinn Enrolled Agent

Reeling in the Years 1993-3

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