Pulling 20K (now 200k) out of my IRA for 1 month for home closing

MarkNYC wrote: ↑Wed Sep 11, 2024 10:38 pm

ChrisC wrote: ↑Wed Sep 11, 2024 10:01 pm

Silk McCue wrote: ↑Wed Sep 11, 2024 9:00 pm

ChrisC wrote: ↑Wed Sep 11, 2024 8:01 pm

Please submit the US Code quotation or the Public Regulation reference. As a retired lawyer, I’d prefer to assessment your complete statutory reference and language. The snippet you simply posted is hardly dispositive of this challenge. I stand corrected when the regulation plainly says what you assume it says. Or if the IRS has issued regulatory steering that helps your interpretation. “An” doesn’t essentially embrace the “similar,”.

https://www.irs.gov/retirement-plans/pl … %20control.

Please discover this textual content on the identical web page. Notice the underlined textual content.

IRA one-rollover-per-year rule
You typically can’t make a couple of rollover from the identical IRA inside a 1-year interval. You additionally can’t make a rollover throughout this 1-year interval from the IRA to which the distribution was rolled over.

Starting after January 1, 2015, you may make just one rollover from an IRA to a different (or the identical) IRA in any 12-month interval, whatever the variety of IRAs you personal (Announcement 2014-15 and Announcement 2014-32). The restrict will apply by aggregating all of a person’s IRAs, together with SEP and SIMPLE IRAs in addition to conventional and Roth IRAs, successfully treating them as one IRA for functions of the restrict.

Cheers

Nah, that is addressing a unique challenge — a number of rollovers into a number of IRAs previous to 2015 — because the IRS above bulletins clarify, with the Tax Courtroom’s resolution in Bobrow v TC, which utilized an aggregation rule that mainly restricted oblique rollovers to at least one per yr, as is now the case. Except for the Inner Income Code and IRS publications, widespread sense tells me that taking a distribution from Smith IRA and putting the quantity of that distribution again into Smith IRA just isn’t actually a rollover. If I had confidence myself in your view, I might be taking actual benefit of the free brief time period 60 day borrowing portal. I might like to be definitively corrected!

When you learn the Bobrow case you talked about above, you will note that the taxpayer took a distribution from IRA account 1 and re-deposited the funds again into consideration 1 inside 60 days. The taxpayer additionally took a distribution from IRA account 2 and re-deposited the funds again into consideration 2 inside 60 days. The IRS didn’t declare that re-depositing again into the identical account was invalid. And the court docket asserted that the re-deposit again to the identical account inside 60 days glad the provisions of 408(d)(3)(A) for a nontaxable rollover contribution.

Effectively, the result’s as you state, however you grossly over-simplify the transactions that too place in that case and it seems the Service didn’t totally agree with the transactions scored as eligible rollovers. As acknowledged there:

“Petitioners and respondent agree that the June 10, 2008, switch to petitioner husband’s conventional IRA was made inside 60 days of each the April 14, 2008, distribution from petitioner husband’s conventional IRA and the June 6, 2008, distribution from petitioner husband’s rollover IRA, however they disagree as to which distribution the switch applies to., When petitioner husband withdrew funds from his rollover IRA on June 6, 2008, the taxable remedy of his April 14, 2008, withdrawal from his conventional IRA was nonetheless unresolved since he had not but repaid these funds. Nevertheless, by recontributing funds on June 10, 2008, to his conventional IRA, petitioner husband glad the necessities of part 408(d)(3)(A) for a nontaxable rollover contribution, and the April 14, 2008, distribution is due to this fact not includible in petitioners’ gross revenue. Thus, petitioner husband had already obtained a nontaxable distribution from his conventional IRA on April 14, 2008, when he obtained a subsequent distribution from his rollover IRA on June 6, 2008. Part 408(d)(3)(B) disallows nontaxable remedy for this second distribution underneath part 408(d)(3)(A). Because of this, the June 6, 2008, distribution from petitioner husband’s rollover IRA is totally includible in petitioners’ gross revenue for taxable yr 2008.”

Yeah, good luck with citing this resolution as dispositive of the problem right here. Thanks for the dialogue.