Ira Rollover Distribution Rules
March 13th, 2009
Question: IRA 60 day rollover rule – regular IRA?
I borrowed from my IRA while waiting for a refinance to remodel our home (not our first house). I redeposited the early distribution on day 62 rather than day 60. Day 60 fell on a Saturday and the markets aren’t open. (It was from my mutual fund.) Am I still subject to the penalty and taxes (I’m 18 months short of 59 1/2)? Does the financial institution report the distribution?
I read somewhere that if you have high medical expenses you can get a waiver. We pay more than 7 1/2% of our adjusted gross in medical expenses and even more this year as we are caring for a very ill mother in law. Would that help?
Does it matter that I have proof the funds arrived on day 60?
Answer: Yes, penalty. This is a weird provision that doesn’t allow the following monday.
see:
http://www.virtualex.com/IRARollovers.html
2. Unlike most tax-deadlines, there is no extension granted if the rollover period ends on a weekend or holiday. So, for example, if the 60-day period ends on a Sunday, the rollover deadline is not extended to the following Monday.
401k Rollover Don’t Leave It Behind
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