After someone takes money out of their IRA, how many days can you use the funds before you have to put it back.
Without incurring taxes and penalties?
2007-11-25 16:43:55 · 5 answers · asked by Steve B 6 in Business & Finance ➔ Taxes ➔ United States
When doing a rollover, you have 60 days to complete it.
2007-11-25 17:06:25 · answer #1 · answered by Judy 7 · 1⤊ 1⤋
Zero days and zero dollars. You cannot remove money from an IRA and put it back without incuring taxes and possible penalties.
Money withdrawn from a traditional IRA incurs the tax liability immediately. And if you're under 59 1/2 there is a 10% penalty in addition to the regular tax burden unless the distribution qualifies under one of the special circumstances such as purchase of a first home, payment of certain medical expenses or you are totally and permanently disabled. You could replace the funds withdrawn and take an AGI adjustment for it, but that is limited to the usual annual limitations.
2007-11-26 06:53:30 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Like others have already mentioned, you have 60 days to complete a rollover transaction. Plan well as this type of rollover is only available to you once a year.
2007-11-26 02:42:29 · answer #3 · answered by Omar B 2 · 0⤊ 1⤋
60 days to complete the rollover
2007-11-26 01:39:18 · answer #4 · answered by sukhvir p 1 · 0⤊ 1⤋
That depends on the type of IRA and how much you withdraw. I believe 90 days is standard. But if you withdraw only the amount you have invested (Leaving behind all of the earning) you don't incur any penalties with a ROTH.
2007-11-26 00:56:17 · answer #5 · answered by Scott M 4 · 0⤊ 5⤋