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. Can I purchase mutual funds for my IRA?

    Learn how to invest your IRA assets in mutual funds. Discover a few of the different types of mutual funds available for ...
  2. What is the minimum amount of money that I can invest in a mutual fund?

    Learn about investing in mutual funds even with a smaller initial investment; there are many funds available to investors ...
  3. Can I purchase mutual funds for my IRA?

    Learn how to invest your IRA assets in mutual funds. Discover a few of the different types of mutual funds available for ...
  4. What are the best ways to plan for retirement?

    Learn the basic steps to creating a solid retirement plan that can support you and your family, and find out how to manage ...
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. ...
Related Articles
  1. If that's always been your dream, there actually are affordable ways to retire in France. Some regions to explore and some cautions to keep in mind.
    Retirement

    Can You Afford To Retire In France?

  2. A delightful climate, World Heritage sites and a low cost of living are just some of the reasons to retire to Ecuador. Here's more about what to expect.
    Retirement

    Why Retiree Expats Adore Ecuador

  3. The names sound similar – continuing care, assisted living – but retirement communities differ widely. How to tell them apart and what you'll need to pay.
    Retirement

    Don't Pick The Wrong Type Of Retirement ...

  4. A description of the top retirement plans for self-employed
    Retirement

    Self-Employed? Top Plans For Retirement ...

  5.  Investors often spend decades working and saving in an effort to build a nest egg for retirement. During that time, their primary investment goal is to see their assets grow. When retirement finally arrives, the investment goal often changes from seeking to grow assets to using those assets to generate income.
    Retirement

    The Best Way To Build Your Retirement ...

Trading Center