A:

Generally, for the distribution to be considered non-taxable, it must be rolled over (deposited) into the IRA (or another of your IRAs) within 60 days of receiving the distributed assets. After the 60-day period, any amount that has not been replaced cannot be rolled over and will be treated as taxable. If you are under age 59.5, the amount will also be subject to the 10% early-distribution penalty, unless you meet one of the penalty exceptions.



Exception: The IRS allows the rollover to be made after the 60-day period only if you were unable to meet the 60-day deadline because of a disaster or other events beyond your reasonable control.



This question was answered by Denise Appleby
(
Contact Denise)



RELATED FAQS
  1. Can I borrow from an IRA without penalty?

    Yes. A 60-day rollover rule applies to all types of IRAs. This 60-day rollover rule allows you to withdraw assets from your ... Read Answer >>
  2. Can I return funds to my Roth IRA after I have taken it as a distribution?

    Yes. You can roll over the amount to the Roth IRA, or another of your Roth IRAs (excluding inherited Roth IRAs), provided ... Read Answer >>
  3. Are short and long dividends taxable before I take any disbursements from my simple ...

  4. How do I roll over a Simple IRA to a Roth IRA?

  5. Can an IRA be used as security for a loan?

    The IRS prohibits the use of an IRA as security for a loan. If an individual borrows money against his or her IRA, the IRA ... Read Answer >>
  6. What are the rules and reporting requirements for a rollover of a required minimum ...

    An RMD may be transferred between IRAs, but it may not be rolled over once distributed. If the RMD amount is rolled over ... Read Answer >>
Related Articles
  1. Retirement

    Avoid the Most Common IRA Rollover Mistakes

    Avoid paying excess taxes by learning some simple transfer rules.
  2. Retirement

    Avoid These Common IRA Rollover Mistakes

    Rolling over an IRA can lead to higher returns and other perks; but avoid these common mistakes.
  3. Retirement

    SEP IRAs: Distributions

    By Denise Appleby Because the funding vehicle for an SEP is a Traditional IRA, the distributions rules of a Traditional IRA also apply to SEP assets.Traditional IRA Distributions. Distributions ...
  4. Retirement

    Traditional IRAs: Distributions

    By Denise ApplebyDistributions from Traditional IRAs must occur eventually. Until the owner reaches the mandatory distribution age, distributions are optional. The tax and penalty applied to ...
  5. Retirement

    Why Rollover Your Retirement Assets into an IRA?

    If you're in the workplace now, chances are you'll ask yourself this question eventually: 'Should I rollover to an IRA?' Here's a guide.
  6. Retirement

    Tax Treatment Of Roth IRA Distributions

    Learn the requirements for withdrawing funds tax and penalty free.
  7. Retirement

    Guide To 401(k) And IRA Rollovers

    Follow the steps detailed below when you need to roll over your 401(k) or IRA account to be sure you preserve tax benefits and avoid penalties.
  8. Retirement

    5 Secrets You Didn't Know About Traditional IRAs

    A traditional IRA gives you a current-year tax benefit and future years of tax savings – minus the income restrictions that limit who can have a Roth IRA.
  9. Retirement

    Tax Treatment Of Ineligible IRA Rollovers

    Eager to save for retirement? Learn how to avoid overpayment penalties.
  10. Retirement

    What's the Tax Hit on an IRA Withdrawal?

    How much taxes you'll pay on IRA withdrawals depends on a variety of factors. Use this guide to plan ahead.
RELATED TERMS
  1. IRA Rollover

    A transfer of funds from a retirement account into a Traditional ...
  2. Traditional IRA

    An individual retirement account (IRA) that allows individuals ...
  3. Roth IRA Conversion

    A reportable movement of assets from a Traditional, SEP or SIMPLE ...
  4. Revoked IRA

    An IRA holder may revoke an IRA within the 7 days after the IRA ...
  5. Disclosure Statement

    1. A document explaining the rules of an IRA in plain, nontechnical ...
  6. IRS Publication 590: Individual Retirement Arrangements (IRAs)

    A document published by the Internal Revenue Service (IRS) that ...
Hot Definitions
  1. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  2. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  3. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  4. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  5. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
  6. Security

    A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship ...
Trading Center