Can I pull out most of my assets from my IRA and use the cash as long as I replace it in the IRA within a year?

By Denise Appleby AAA
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. Places where I can open an IRA Account?

    Open an IRA through brokerage firms, mutual funds, banks and other major financial institutions, or through large Internet ...
  2. What rate of return should I expect on my 401(k)?

    Learn what factors affect your 401(k) performance, and understand what a typical rate of return is for employer-sponsored ...
  3. How can an entrepreneur save for retirement?

    Learn about the retirement savings plan options for entrepreneurs and small business owners, including administration and ...
  4. What would privatized Social Security mean for Americans?

    Take a deeper look at how a privatized Social Security system would work, including looking at a real example that's existed ...
RELATED TERMS
  1. Self Invested Personal Pension (SIPP)

    A tax-efficient retirement savings account available in Great ...
  2. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  3. Gold IRA

    Definition of Gold IRA
  4. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  5. Leveraged Benefits

    The use – by a business owner or professional practitioner – ...
  6. Peri-Retirement

    A term for the period of time leading up to actual retirement. ...

You May Also Like

Related Articles
  1. Trading Strategies

    Top 7 Roth IRA Stocks for 2015

  2. Professionals

    Are Longevity Annuities in 401(k)s a ...

  3. Professionals

    Why Retirement Advice Is Better But ...

  4. Professionals

    Coming Soon: Private Equity In 401(k) ...

  5. Professionals

    Ways To Cut 401(k) Expenses

Trading Center