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
Answers
Sort By:
Most Helpful
3 days ago

No taxes. You will receive a 1099 showing a taxable distribution. The IRS form 1040 asks whether the distribution was taxable on non-taxable. In the summer the IRA administrator issues a 5498 showing transactions that will verify the roll over.

401(k) to an IRA is a direct transfer and is not considered a roll over. No problem with those.

2 weeks ago
2 weeks ago
2 weeks ago
3 weeks ago