topic Re: withdrawal from IRA in Retirement tax questions

withdrawal from IRA

pmal2006 — Wed, 02 Apr 2025 04:10:39 GMT

I have opened a new IRA account.

I want to withdraw $50K from my existing IRA account, keep it in my regular checking account for 45 days, and then return it to my new IRA account.

Will there be any Tax implications?

Re: withdrawal from IRA

VolvoGirl — Wed, 02 Apr 2025 04:23:11 GMT

That will be a Rollover. You have 60 days to put it back into a IRA. You will get a 1099R for it. If any tax withholding is taken out you will need to replace the withholding with other money when you put it in the new IRA. Or the withholding will become a taxable distribution and a 10% Early Withdrawal Penalty if you are under 59 1/2.

Re: withdrawal from IRA

pmal2006 — Wed, 02 Apr 2025 05:29:41 GMT

Thank you very much. But I worry that I am not transferring directly from one IRA to another IRA.

I am keeping the money in my regular checking account for 45 days. will it still be considered as a rollover?

Old IRA-> Regular checking account (45days)->New IRA

Re: withdrawal from IRA

VolvoGirl — Wed, 02 Apr 2025 06:02:29 GMT

Yes you have 60 days to deposit it into a new IRA account or back into the old IRA. Do you need to use the money for 45 days for something? That would be like taking a short term loan. It's ok. Be sure you put it into a Traditional IRA. If you put it into a ROTH IRA that is a conversion and will be all taxable now.

At the end of the year you will get a 1099R for it. After you enter the 1099R it will ask what you did with it. You pick I moved the money to another account even if you put it back into the same account. Then that will expand and you pick I rolled over all this money. Then it will expand to enter how much you rolled over.

Re: withdrawal from IRA

fanfare — Wed, 02 Apr 2025 19:44:48 GMT

You can do this only once in a 12 month period. Your Congress found it to be annoying and put limits.

Re: withdrawal from IRA

pmal2006 — Fri, 04 Apr 2025 17:46:19 GMT

Thank you very much!

Re: withdrawal from IRA

pmal2006 — Fri, 04 Apr 2025 17:46:41 GMT

Thank you!