Roth IRA 60-day Rule

[michael2020]

Let's say I withdrew $50,000 from my Fidelity Roth IRA to my Fidelity checking in December 2022; one week later in December 2022, I withdrew $100,000 from the same Fidelity Roth IRA to my Fidelity checking. Now assume I feel regretful taking both money out. I want to use 60-day rollover rule to deposit as much money back to my Roth IRA as possible.

Questions:

1. Can I deposit some money to the same Fidelity Roth IRA account in January 2023? Does the cross-calendar year hurt? Do I need to open another Roth IRA to deposit the money?

2. What's the maximum amount I could deposit back? $100,000? Or $50,000+$100,000?

3. The two withdraws qualifies for early distribution for qualified educational expenses/house purchase. My concern is: if I deposit back partial or all of the withdraw, will cross-year tax filing be filed in 2023 or in 2024?

Thank you!

[tagteam]

Check back here. I will page @dmertz 

[dmertz · Accepted solution]

1. Yes, provided you have not rolled over (to the same type IRA) to the any other IRA distributions in the one-year period ending on the date of the distribution that you intend to roll over.

2.  Rolling over both of these distributions in their entirety would violate the rollover limitation that I described in #1.  If the $50,000 distribution was intended to be used for a qualified first-home purchase but that purchase fell through, $10,000 of that distribution could be rolled over without regard to the rollover limitation.  Otherwise you could roll over a maximum of the $100,000, the larger of the two distributions.  

3.  This is all reportable on your 2022 tax return, the year of the distributions, even though a rollover will not be completed until early 2023.

[michael2020]

Thank you very much. For the rollover, do I need to open another Roth IRA, or could I roll over back to the same Fidelity Roth IRA?

[dmertz]

A rollover can be back to the same Roth IRA or to a different Roth IRA.