60 day rollover for distribution that was designated for 100% withholding

[locorebob]

Following a large Roth Conversion ( with ZERO withholding) performed in July 2025, I want to initiate a distribution in December of 2025 that is 100% applied for Federal tax withholding to cover the tax on the July 2025 Roth conversion.   For the purpose of avoiding being pushed into the next IRMMA bracket for Medicare Part B & D in 2027, and to prevent further inflating my taxable income in 2025, I want to initiate a distribution in January 2026 that is paid directly to me ( or Fidelity if possible) and thereby nominate that distribution as a 60 rollover to cover and reimburse the IRA and thus reduce my 2025 taxable income by the amount of the aforementioned December 2025 distribution.  My motivation is to prevent further inflating taxable income in 2025 and essentially defer the December 2025 distribution impacting my 2025 tax obligation and instead allow that distribution to increase my 2026 income and thus affect my 2026 tax obligation while keeping my 2025 income at a level to avoid being pushed into the next IRMMA bracket in 2027.   Is this possible thru TurboTax?  Moreover, is this allowed by the IRS and  I'm assuming form 2210 is required when I file 2025 Taxes via TurboTax?   If Form 2210 is required, does that require that I mail the return via USPS?

Thanks TurboTaxBob

[Bsch4477]

1. When you made the Roth conversion you owed tax on that amount 

2. If you make an IRA withdrawal in December 2025 and withhold the entire amount to cover the conversion tax owed you still will be taxed on the amount you withdrew in December and that amount is 2025 income.

3. Any distribution made in 2026 doesn’t affect your 2025 tax situation. 

[locorebob]

I don't think I made myself clear.   I understand I owe taxes for 2026,  but that is not the essence of this question.   Any suggestions to make it clear, I am open to.  

[Bsch4477]

If your aim is to reduce 2025 income, note that both 2025 distributions are 2025 income. Your 2026 withdrawal does not reduce that 2025 income. 

[dmertz · Accepted solution]

locorebob, what you propose is certainly doable and easily accommodated in TurboTax.  It doesn't matter where you obtain the funds to complete in January 2026 the rollover of the December 2025 distribution, the rollover is reported the same no matter where the funds come from.  When you enter the 2025 Form 1099-R that includes the December 2025 distribution, you'll simply indicate the amount rolled over.  Also, the fact that the rollover deposit occurs in 2026 has no bearing on how you report the rollover of the December 2025 distribution.

If you were over age 59½ at the time of the Roth conversion and the December distribution comes from the same traditional IRA as did the distribution that was converted to Roth, both will be combined on a single code-7 Form 1099-R.  TurboTax will likely require you to split this Form 1099- into two for entry.

As you have noted, the January 2026 distribution will be reportable on your 2026 tax return.  (The January 2026 distribution will be ineligible for rollover due to the one-rollover-per-12-months limitation on rollovers.  You won't be permitted to roll over any IRA distributions made prior to one year after the December 2025 distribution, so you'll need to be careful if you consider doing something similar near the end of 2026.  I'm also assuming that you have not done a rollover of any other IRA distributions made in or after December 2024 that would make the December 2025 distribution ineligible for rollover.)

Assuming that you do not annualize income on Schedule AI of Form 2210, all of you income and tax withholding will be treated as having occurred evenly throughout the year.

[locorebob]

thanks for reply @Bsch4477 ,  however I'm reviewing the thorough reply from @dmertz where it's looking favorable regarding the sequence of steps outlined in my question and that using a 60 day rollover as a way to keep 2025 income in check.

[locorebob]

thank you for reading and understanding my question and also for the thorough the reply @dmertz   I meet all criteria for the conversion, the rollover and understand the restrictions and impact on taxes owed.  I understand  how and when a simple distribution affects income.   I called the IRS yesterday and spent an hour on the phone with someone from the IRS trying to get an answer and she spent quite a lot of time reviewing forms 590 (page 33) and publication 505 (pages 29, 31 and 32 ) and referred me to form 2210.    In the end, she could not and would not confirm the sequence of steps in my question are permitted by the IRS and suggested I contact a certified tax professional for advice.   Appreciate the time you took to review and reply to my question.