Can I return funds to my Traditional IRA after taking a distribution?

By Denise Appleby AAA
A:

If you take a distribution from your Traditional IRA, you can roll over the amount to the same Traditional IRA or another Traditional IRA, provided the following requirements are met:

  • The rollover is completed within 60 days of receiving the distribution.
  • You have not completed an IRA-to-IRA rollover for the IRAs within the 12-months that preceded the date the distribution occurred.
  • The amount is rollover eligible. For IRA-to-IRA rollovers, ineligible rollover amounts include amounts representing required minimum distributions .

You are allowed to make tax-free rollovers from your IRAs at any age, but if you are 70.5 or older, you cannot roll over your RMD; this would be considered an excess contribution.

If you are required take RMD each year, be sure to remove the current year's RMD amount from your IRA before implementing the rollover.

Exceptions to the 60-deadline apply only in certain cases. See Exceptions To The 60-Day Rollover Rule.

This question was answered by Denise Appleby.

RELATED FAQS

  1. What is a 401(k) rollover?

    Find out what a 401(k) rollover is, when you might want to roll over a 401(k) and whether a direct or indirect rollover is ...
  2. Are qualified pension plans taxable?

    The taxable portion of your pension or annuity payments is usually subject to federal income tax withholding, according to ...
  3. How do you withdraw money from your 401(k)?

    Deciding to take a withdraw from your 401k is not a decision that should be made lightly. However, for those who needs funds, ...
  4. Is it possible to obtain a loan from a qualified retirement plan?

    Read how loans are available for qualified retirement plans; most loans allow for $50,000 or 50% of the current vested value, ...
RELATED TERMS
  1. Elder Care

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

    Definition of Gold IRA
  3. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...
  4. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose ...
  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. ...
comments powered by Disqus
Related Articles
  1. Top Financial Frights: Emergencies & ...
    Investing Basics

    Top Financial Frights: Emergencies & ...

  2. Steps To Retiring With A Reverse Mortgage
    Retirement

    Steps To Retiring With A Reverse Mortgage

  3. When Your Job Offers An Awful Retirement ...
    Retirement

    When Your Job Offers An Awful Retirement ...

  4. Top 5 Strategies To Pay For Elder Care
    Retirement

    Top 5 Strategies To Pay For Elder Care

  5. 5 Top Alternatives To A Reverse Mortgage
    Retirement

    5 Top Alternatives To A Reverse Mortgage

Trading Center