IRA withdrawing and payback period

[maya1959]

How soon I need to pay back Traditional IRA without paying taxes and penalty

[MinhT1]

You can do a rollover to a Traditional IRA within 60 days of the date you received the distribution.

This would qualify as a tax-free, penalty-free rollover.

Please note that if taxes were withheld from the distribution, you'll have to use other funds to rollover the gross amount of the distribution.

Please read this IRS document for more information.

[maya1959]

If I withdraw 3/5/25 and pay back in 12/15/25 do I have to pay tax on it. I'm 69 years old

Do I have to include income in 2024 tax year?

[MinhT1]

Please clarify. Do you mean 3/5/24 and 12/15/24?

[Opus 17]

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@maya1959 wrote:

If I withdraw 3/5/25 and pay back in 12/15/25 do I have to pay tax on it. I'm 69 years old

Do I have to include income in 2024 tax year?

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You can't do that.

I will assume you want to withdraw this month (3/5/25), pay back before the end of the year, and pay taxes in 2025 (2025 tax return that will be prepared in Spain 2026).

No, you can't do that.  You can only "pay back" an IRA withdrawal if it is within 60 days.  That is considered a type of "rollover", whether you put the money back into the old IRA or a new IRA, the rules are the same.  There is a 60 day limit.  The only exception are the $1000 "family emergency" withdrawal, and a Qualified Disaster Distribution, both of which may be repaid in up to 3 years.

If you take a withdrawal on 3/5/25, that will be taxable income to you unless you pay it back (rollover) within 60 days.  If you miss the 60 day window, you can't pay it back to avoid the tax.  And, you can't make a new contribution in December to get a tax deduction unless you have compensation from working (W-2 job or self-employment).

[fanfare]

a deposit after the 60 period is considered an independent contribution that must follow the rules for contributions..