Question

Can multiple IRA disbursements be combined in a rollover repayment

Forum|Forum|6 years ago
November 15, 2019
1 reply
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I withdrew $4,000 from my Traditional IRA on Sep 26 and $4,034.94 on Oct 16. I am still within the 60-day window for the Sep 26 disbursement. Can I combine these two disbursements and rollover $8,034.94 to my IRA or am I limited to only the last disbursement for a rollover?

D

dmertz

Employee

No. Only one of these distribution is permitted to be rolled over to a traditional IRA in a 365-day period, so you can't roll over both of these distributions, but the choice of which one to roll over is yours as long as you are still within the 60-day window for the distribution being rolled over.

Whichever distribution you do not roll over can be deposited into a Roth IRA as a conversion contribution without violating the one-per-yer rollover limitation. Roth conversions are disregarded with respect to the limitation, but you would own taxes on the conversion. You could potentially roll the money over to a qualified retirement plan like a 401(k) (if the plan will accept the rollover) since rollovers to or from a qualified retirement plan are similarly disregarded. The amount rolled over to a qualified retirement plan would be nontaxable.

Also be aware that required distributions (RMDs) are not permitted to be rolled over.