Talk of The Villages Florida

Talk of The Villages Florida (https://www.talkofthevillages.com/forums/)
-   Investment Talk (https://www.talkofthevillages.com/forums/investment-talk-158/)
-   -   60 Day IRA rollover questions (https://www.talkofthevillages.com/forums/investment-talk-158/60-day-ira-rollover-questions-357704/)

PurvisT 04-03-2025 04:58 AM

Yes, we did but our amount was much lower, we reinvested within 30 days and our CPA just completed our taxes with no tax due.

ltcdfancher 04-03-2025 05:07 AM

I just did the same thing…a number much less than $300K…to pay closing costs for our new Villages home. I pulled the money out using Fidelity’s on-line platform. It was too easy. Putting the money back in today with the help of my advisor; it’s not as straightforward when cash moves in the other direction.

We had a contract on our former home before we closed on The Villages home, so I wasn’t stressed about exceeding the 60-day deadline.

rsmurano 04-03-2025 06:01 AM

I’ve done this. You can take money out of your IRA once per year and put it back in without any penalty. I did this 7 years ago.

I was building a house and The mortgage company required that I take the money out of my IRA for the mortgage payment each month. I was paying cash for the house but when the mortgage company offered me $10k off the house if I took out a loan, I thought sure, then I would pay it off within a month. Then when they told me I had to pull it out of my ira, I told them it will cost me money so to close the deal, they gave me another $1500 off. I took the money out, took a picture of the withdrawal and the monthly occurrence of future payments, they approved it, I cancelled the monthly withdrawal and put the money back into the ira. No problem.

bowlingal 04-03-2025 06:09 AM

Why in the world are you asking on here? Go speak with an accountant or financial advisor. Don't you realize answers on these forums are about 80% wrong?

sowilts 04-03-2025 06:25 AM

Quote:

Originally Posted by dewilson58 (Post 2420294)
Yes you can, but for $300k exposure............spend a couple bucks and talk to a Pro, not a Villager.

:beer3:

As always, Helpful advice. Agree 100 percent.

retiredguy123 04-03-2025 06:50 AM

Quote:

Originally Posted by bowlingal (Post 2420442)
Why in the world are you asking on here? Go speak with an accountant or financial advisor. Don't you realize answers on these forums are about 80% wrong?

Accountant? maybe. Financial advisor? no.

A better choice would be your IRA custodian. It is their responsibility to report IRA activity to the IRS.

Haggar 04-03-2025 07:23 AM

Quote:

Originally Posted by retiredguy123 (Post 2420457)
Accountant? maybe. Financial advisor? no.

A better choice would be your IRA custodian. It is their responsibility to report IRA activity to the IRS.

Do not rely upon your custodian/trustee/advisor. They should refer you to a tax practitioner. Most don't know the tax law or if you have IRA's in other accounts. Most advisors will advise you what your RMD should be but will not remind or advise you to take it out of their IRA or others. If they get a percentage of your portfolio they might advise you to take your RMD out to IRA's to preserve their advisory fee.

merrymini 04-03-2025 07:25 AM

And if your house doesn’t sell?

Haggar 04-03-2025 07:28 AM

Quote:

Originally Posted by MplsPete (Post 2420345)
Is this beneficial?
For example, if the OP has, say, 3 million in various retirement accounts (not terribly unlikely) won't he eventually have to cash out 300k per year for RMD and pay the taxman?

(Asking more for me than thee.)

RMD's are based on life expectancy. At age 73 you have to take out approximately 4% of the previous year end balance (based upon a 26.4 life expectancy) . The percentage goes up each year.

Biskopski 04-03-2025 08:02 AM

Short term loan
 
Quote:

Originally Posted by TSO/ISPF (Post 2420204)
Buying a house. Want to use a 60 day rollover to pay for part of the new house while waiting to sell existing home. Can I take 300K out of my IRA to cover that cost and pay it back within 60 days without incurring any taxes. Has anyone done this. The IRS examples can be confusing.

Third Federal out of Ohio is licensed to do business in Florida. Last year they were offering an adjustable loan that cost you a total of $295 for the loan fees and all closing cost for the loan. Several loan terms of fixed rate for 6mo, 1 yr, 3yr adjustable loans. So if you think your home will sell in 6mo to 1 yr you refinance your current home, use those funds to structure your new purchase. Fast process and easier accounting to when you file your next tax return. Google Third Federal of Ohio for the loan details and to speak to a loan rep. Hope the program still available for you.

RoadToad 04-03-2025 08:42 AM

Quote:

Originally Posted by dewilson58 (Post 2420294)
Yes you can, but for $300k exposure............spend a couple bucks and talk to a Pro, not a Villager.

:beer3:

Haggar IS a Pro..

Birdrm 04-03-2025 08:47 AM

The other option is to take out a mortgage with a recasting option. This is exactly what I did when I bought here. So my original loan was for let's just say $300k and then after 2 months I had the proceeds from my house sale and applied $120k to reduce my mortgage and payment.
This has to be included as an option with the mortgage and this way you do pay a larger mortgage payment the first few months but then the payment is adjusted with the new down payment to the mortgage. The other nice thing is the mortgage remains as recast for the entire length and you can apply a payment, I think the minimum is 10 or 20k but it would again reduce the mortgage payment.

tomrdad@yahoo.com 04-03-2025 08:04 PM

Quote:

Originally Posted by TSO/ISPF (Post 2420204)
Buying a house. Want to use a 60 day rollover to pay for part of the new house while waiting to sell existing home. Can I take 300K out of my IRA to cover that cost and pay it back within 60 days without incurring any taxes. Has anyone done this. The IRS examples can be confusing.

Yes you can, I’ve done it before. Just keep in mind the 60-Day is 60 calendar days, including weekends, Sundays and holidays.

seecapecod 04-04-2025 07:12 AM

Quote:

Originally Posted by TSO/ISPF (Post 2420204)
Buying a house. Want to use a 60 day rollover to pay for part of the new house while waiting to sell existing home. Can I take 300K out of my IRA to cover that cost and pay it back within 60 days without incurring any taxes. Has anyone done this. The IRS examples can be confusing.

I have and the window was 90 days to payback before incurring taxes as a distribution. Always check with the financial advisor for anything that may be different with your investment.

Haggar 04-04-2025 07:23 AM

Quote:

Originally Posted by seecapecod (Post 2420845)
I have and the window was 90 days to payback before incurring taxes as a distribution. Always check with the financial advisor for anything that may be different with your investment.

Window has always been 60 days. It's why I said in a previous post don't rely on your financial advisor.


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