Discussion:IRA 60-Day Rollover, then withdrawal
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
(Difference between revisions)
| Revision as of 19:48, 4 November 2009 DaveFogel (Talk | contribs) (I agree. See IR) ← Previous diff |
Revision as of 20:01, 4 November 2009 Seaside CPA (Talk | contribs) (Don't forget tha) Next diff → |
||
| Line 13: | Line 13: | ||
| {{ForumReplyPost|UserID=DaveFogel|Date=4 November 2009|Text=I agree. See IRC §408(d)(3)(B).}} | {{ForumReplyPost|UserID=DaveFogel|Date=4 November 2009|Text=I agree. See IRC §408(d)(3)(B).}} | ||
| + | |||
| + | {{ForumReplyPost|UserID=Seaside CPA|Date=4 November 2009|Text=Don't forget that he will have 20% withheld for federal withholding. When he rolls over the money within 60 days, he will have to make up the difference or be taxed on that 20%.}} | ||
Revision as of 20:01, 4 November 2009
Discussion Forum Index --> Advanced Tax Questions --> IRA 60-Day Rollover, then withdrawal
Discussion Forum Index --> Tax Questions --> IRA 60-Day Rollover, then withdrawal
| 4 November 2009 | |
| My client wants to borrow money from an IRA (withdraw the funds and return it to the IRA within 60 days). This will most likely occur in 2009.
In 2010, my client plans to withdraw money from this IRA because their tax bracket will be lower in 2010. Does anyone know if there is a waiting period (after returning the money to the IRA within 60 days) before a withdrawal can be executed? Thanks for your time in advance! | |
| 4 November 2009 | |
| I believe that the rules still say that you can't do more than one rollover (which is what it amounts to) within a 12-month period, but I haven't looked it up. | |
Seaside CPA (talk|edits) said: | 4 November 2009 |
| Don't forget that he will have 20% withheld for federal withholding. When he rolls over the money within 60 days, he will have to make up the difference or be taxed on that 20%. | |
