IRA Rules

Posts Tagged ‘rollover’

“401k To IRA Rollovers” Mauricio Garcia Chicago Area Specialist

Question: If I convert my rollover & nondeductable IRAs to Roth, can I then comingle those with my existing Roth IRAs?

In my retirement account I have a Rollover IRA from a former employer, a Roth IRA, and also a traditional (nondeducted) IRA, all are in separate accounts — I understand that tax rules don’t allow comingling of funds with different rules (like Roth vs. Traditional.) If I convert my Rollover and traditional IRAs to Roth, then all the different accounts would be under the same rules. Will I then be able to combine/comingle those acconts, so all the funds are in one big account?

Answer: Yes. Once all your IRAs are converted to Roths, you can transfer them to another Roth of your choosing.

Self Directed IRA Custodian :: Real Estate IRA :: Rollover 401k

Question: IRA 60 day rollover rule – regular IRA?

I borrowed from my IRA while waiting for a refinance to remodel our home (not our first house). I redeposited the early distribution on day 62 rather than day 60. Day 60 fell on a Saturday and the markets aren’t open. (It was from my mutual fund.) Am I still subject to the penalty and taxes (I’m 18 months short of 59 1/2)? Does the financial institution report the distribution?
I read somewhere that if you have high medical expenses you can get a waiver. We pay more than 7 1/2% of our adjusted gross in medical expenses and even more this year as we are caring for a very ill mother in law. Would that help?
Does it matter that I have proof the funds arrived on day 60?

Answer: Yes, penalty. This is a weird provision that doesn’t allow the following monday.

see:

http://www.virtualex.com/IRARollovers.html

2. Unlike most tax-deadlines, there is no extension granted if the rollover period ends on a weekend or holiday. So, for example, if the 60-day period ends on a Sunday, the rollover deadline is not extended to the following Monday.

Transfer of Funds to SD — “Trigger” a Distribution of MY Plan?