Do I have to pay taxes on an IRA distribution that is replenished within 60 days?

I am 49 and I withdrew $100,000 from my IRA on Dec 12, 2017 to fund a down payment for an apartment purchase. I am planning to return the same amount to the same IRA within 60 days (by Feb 10, 2018), with the proceeds from the sale of my current apartment. Do I have to pay any taxes and/or penalties, considering that I am crossing over two different tax years and my IRA will send me a 1099 showing the distribution (but not the replenishment)?

Also, this IRA was opened earlier in the year and funded with money from two previous 401(k) accounts (non-active, from previous employers). I understand that there is a one-per-12 month IRS rule regarding IRA rollovers. Does this apply to rollovers from 401k(s) to IRAs?

Financial Planning, IRAs, Real Estate, Taxes
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December 2017

There is no tax due under normal circumstances as long as the money is 100% replaced within 60 days.  The fact that it crosses over two years is irrelevant; all that matters is the 60-day time limit.  When you do your taxes in March or April, you can indicate that the rollover was completed so no taxes will be do on your federal or state return.

You are correct that only one rollover is allowed per 12 months.  Moving money from a 401(k) into an IRA doesn't count as a rollover, only money moved from an IRA into a non-retirement account.  Be sure that after the rollover is completed, you wait at least 12 months from the first rollover before considering doing another one.

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