What Is the Roth Ira 5-Year Rule?
Even though you only received $13,500, you need to deposit $15,000 back in the IRA within 60 days. If you only deposit the $13,500, the last $1,500 is treated as a distribution. Even though you won’t owe any taxes on money you take out and put back in the same account within 60 days, you still need to report it on your taxes.
When do you have to replace money in an IRA?
When you take a distribution from your IRA, the bank withholds money for the income taxes you would owe on the money if you didn’t roll it over. However, you’re still responsible for replacing the entire amount within 60 days, not just the amount you received.
