Lion EA Posted April 29, 2015 Report Share Posted April 29, 2015 (edited) Client loses job, rolls 401(k) into an IRA, takes a lot of money out of IRA at beginning of April. About to take more out now. Broker/client call me. Client due to receive good severance and also has new job due to start soon, so will be able to replace some or all funds in his IRA. Can he do this twice? 60 days to replace from time of each withdrawal, right? Edited April 29, 2015 by Lion EA Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 29, 2015 Report Share Posted April 29, 2015 As I understand recent IRS clarification, only once per calendar year. Quote Link to comment Share on other sites More sharing options...
Lee B Posted April 29, 2015 Report Share Posted April 29, 2015 As I understand recent IRS clarification, only once per calendar year.I don't have time to look it up, but if I remember correctly, it's changed to once per 12 months.For example, you cannot do it once in December and do it again in January.Also, the limit is once in the 12 month period no matter how many IRAs you have. 3 Quote Link to comment Share on other sites More sharing options...
JMovichEA Posted April 29, 2015 Report Share Posted April 29, 2015 Link:http://www.irs.gov/Retirement-Plans/IRA-One-Rollover-Per-Year-Rule Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 29, 2015 Author Report Share Posted April 29, 2015 Thank you all. I was remembering something like that but not searching well to find it. Maybe the broker and I can keep him from taking the second distribution or making it smaller.So, he can take one distribution and put it back in 60 days tax free. If he takes a second distribution, it will be taxable. Does a second distribution make his first distribution taxable also? Quote Link to comment Share on other sites More sharing options...
Lee B Posted April 29, 2015 Report Share Posted April 29, 2015 I would encourage your client to do anything else i.e. interest free or low interest credit card advance, borrow from whomever , etc . 1 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 29, 2015 Report Share Posted April 29, 2015 Thank you all. I was remembering something like that but not searching well to find it. Maybe the broker and I can keep him from taking the second distribution or making it smaller.So, he can take one distribution and put it back in 60 days tax free. If he takes a second distribution, it will be taxable. Does a second distribution make his first distribution taxable also?No, the first one is still not taxed if it was rolled within the 60 days. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 29, 2015 Author Report Share Posted April 29, 2015 OK, I've read every IRS "clarification" about this and all your comments. Think I've got it. It's a lot of money for this client, so wanted to make sure he can put his early April distribution back in within 60 days no matter what he takes out in the future. Hopefully, he has enough sources of funds to get him through until the new job starts. Talked with client and his broker and emailed broker the various IRS links also.Some of the IRS info was old info that was edited after the one-per-year clarification, so reads rather awkwardly and a bit ambiguously. With a lot of money at stake for my client and my rep at stake with the broker, I didn't want to get this wrong. Thank you very much to all of you. 1 Quote Link to comment Share on other sites More sharing options...
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