60 day withdrawal
L1: 60 day withdrawalCan I take 9k out of my SEPP account if I pay it back in less than 60 days? Can I do it from my wifes IRA if I did one in July of 2011?2016-12-02 21:30, By: Scott, IP: [220.127.116.11]
L2: 60 day withdrawalEach spouse is allowed just ONE 60 day rollover over a running 12 month period. This applies whether there is an active SEPP or not. Transactions done in 2011 are immaterial to this issue.
Note that preserving the one rollover can provide some protection to your SEPP. For example, if you discovered this month that you have already exceeded your annual SEPP distribution AND if you have taken a distribution in the last 60 days, you can roll enough of that distribution back to the IRA so that your plan is not busted. Of course, distributions you took over 60 days ago cannot be rolled over.
Finally, if you take an extra distribution this month and do not roll it back until late January, 2017, you would report a rollover on line 15 of Form 1040 for the 2016 distribution, the same line on which you report the SEPP distributions that are not rolled over.
If one of you has an IRA that is NOT part of a SEPP plan, it would be better to take the 60 day rollover money of that account, not the IRA funding the SEPP. That would result in the 1099R for the SEPP IRA still equaling the calculated amount.2016-12-03 00:25, By: Alan S, IP: [18.104.22.168]