A client, MFJ, 72 years old, had a distribution from her IRA to help purchase a home. The distribution of $222,350 was made on December 10, 2018. A new home was purchased on December 17, 2018. Their Old home was sold the day after. Exclusion applies. Proceeds from the sale of the old home were used and $210,000 was re-deposited back into the IRA on January 2, 2019.
The $210,000 can be treated as a tax-free distribution since it was rolled within the 60 day period, correct? The ATX entry on the 1099R would show:
Gross Distribution $222,350
Taxable Amount $222,350
Rollover Amount Included in Line 2A $210,000.
Is this correct? Questioning myself because the rollover, while within the 60 day period, did not happen until 2019.