Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

We took a 80,000 distribution from an IRA and landed it

We took a 80,000...

We took a 80,000 distribution from an IRA and landed it someone on January 10th with the intention to put it back within 60 days after a house sold i was selling. it now is going to be another 60 days to close which puts me out side the to 60 day window. I am 55 years old so I know I will have the 10 percent penalty to pay but if I put the 80,000 back in the next 60 days within the same calendar year will this still be income against me?

Show More
Show Less
Ask Your Own Tax Question
Answered in 5 minutes by:
3/8/2018
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,385
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Ask Your Own Tax Question
Customer reply replied 5 months ago
Thanks Robin

You are correct you will have a 10% penalty and unless you can complete a rollover in the required 60 days you will also see this as income unfortunately.

The rollover time is not extended to another 60 day period.

Ask Your Own Tax Question

Well there are certain circumstances apply to the taxpayer if you miss the 60 days. Those circumstances are:

  1. An error was committed by the financial institution making the distribution or receiving the contribution.
  2. The distribution was in the form of a check and the check was misplaced and never cashed.
  3. The distribution was deposited into and remained in an account that I mistakenly thought was a retirement plan or IRA.
  4. My principal residence was severely damaged.
  5. One of my family members died.
  6. I or one of my family members was seriously ill.
  7. I was incarcerated.
  8. Restrictions were imposed by a foreign country.
  9. A postal error occurred.
  10. The distribution was made on account of an IRS levy and the proceeds of the levy have been returned to me.
  11. The party making the distribution delayed providing information that the receiving plan or IRA required to complete the rollover despite my reasonable efforts to obtain the information.
Ask Your Own Tax Question
Customer reply replied 5 months ago
If it is put back in the same calendar year such as the next. is that any way to reduce your income. I guess there anyway to get the income that will be coming reduced by paying it back or investing it in an another IRA

You must meet the 60 days whether you put t back or into a new one. It is not a rollover unless you do, it is just a distribution.

You know you cannot make a contribution of $80K into an IRA.

Ask Your Own Tax Question
Customer reply replied 5 months ago
please
Customer reply replied 5 months ago
what other ways can we use the 80 to reduce the tax liability in the same calendar year.

Did you read the list of possible exceptions to not meeting the 60 day time requirement? Those are the only reasons the IRS would allow more time. Your situation as you explained it, does not meet any of those unfortunately.

Ask Your Own Tax Question
Customer reply replied 5 months ago
it does not. I am trying to eliminate the adjusted gross income at the end of this year to reflect the 80,000 as much as possible .
Customer reply replied 5 months ago
im sorry to offset the 80,000 that will be shown as a distribution.

If you can contribute to an IRA then you can do that but that is just $5,500 ($6,500 if you're age 50 or older). Not much help

Ask Your Own Tax Question
Customer reply replied 5 months ago

For 2018 yes. Those are claimed for the actual year you make them.

Ask Your Own Tax Question
Customer reply replied 5 months ago
OK, what other ways can be used to reduce the 80,0006500 to IRA
80,000 contribution
what other ways to reduce the adjusted gross income

After the year ends there is just very limited options that one can do to reduce the prior year income.

That is pretty much it. The small amount for the IRA

Ask Your Own Tax Question
Customer reply replied 5 months ago
ITs not after the year ends. the withdraw was made Jan 2018 for 80,000 the 60 days is this weekend. we will have the remainder of this year to itemize the deductions. Outside of the IRA and Charitable contributions what other deductions can be made between now and year end 2018 to reduce the adjusted gross income

So much has changed for 2018.

These on the Schedule A for 2018 are Fully eliminated

Ask Your Own Tax Question

I am searching but that is a lot to try and eliminate or even reduce. It's not like it's stocks so I can purge the bad ones and show some loss.

Ask Your Own Tax Question
Customer reply replied 5 months ago
what if the whole 80, 000 was given to the church36,000 is the annual income it is fixed
then this 80,000 will be taxed.
there will be some housing interest expenseif the whole 80,000 is given to the church what would that look like

The deduction for charitable contributions is expanded so that taxpayers in 2018 may contribute up to 60% of their adjusted gross income, rather than up to 50% like now.

That would be 60% of $116000 ($69600)

If you were to donate all the $80 you would be allowed to carry the remaining over to 2019

Ask Your Own Tax Question
Customer reply replied 5 months ago
Ok, the investment house that will be sold. bought it in January for 235,000, if we don't sell it until next year. can we deduct the interest, and what would the depreciation on it as an expense

Are you using this property as rental?

Ask Your Own Tax Question
Customer reply replied 5 months ago
1100 per month until April then we were selling it

Then yes you still count the depreciation and the interest against the rental income.

Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,385
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified
Robin D. and 87 other Tax Specialists are ready to help you
Ask your own question now
NPVAdvisor
NPVAdvisor, CFP Licensee and Practitioner
Category: Tax
Satisfied Customers: 180
Verified
Phone call session started
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,385
18,385 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

18,385 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
At what age can one withdraw from a SEP and 401-K and what
at what age can one withdraw from a SEP and 401-K and what are the borrowing provisions … read more
abci168
abci168
Principal
27 satisfied customers
If somebody have already withdrawn the money IRA, what is
if somebody have already withdrawn the money IRA, what is the time limit he/she can redeposit the money to avoid early withdrawal penalty and taxes on that amount?… read more
abci168
abci168
Principal
27 satisfied customers
If I withdraw money from my IRA account and repay it in full
If I withdraw money from my IRA account and repay it in full within 60 days are there any tax penalties that I will need to pay? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I took a withdrawal from my IRA to pay cash for a home. At
I took a withdrawal from my IRA to pay cash for a home. At the same time my husband sold his home with a 50,000 net profit. This will increase our income from 50, 000 annually to 160,000 for 2017! We … read more
abci168
abci168
Principal
27 satisfied customers
I did a rollover from the 401k to the IRA for 50k. I purpose
I did a rollover from the 401k to the IRA for 50k. I purpose to withdraw another 50k from the 401k to pay the first 50k back within 60 days. Thus giving myself 120 days to complete a transaction.… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
I took an early distribution from an IRA to fund a new home
I took an early distribution from an IRA to fund a new home under the expectation that my old home would close in time to replace the funds within a 60 day period. Now that may not be the case. I unde… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
18,385 satisfied customers
I am going to take money out of my IRA down payment on a new
I am going to take money out of my IRA for a down payment on a new house. I then will sell my house I am living in and want to put the money back in my IRA. It will take longer than the 60 days for a … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
I hope you can help. On June 15th, I took a $10,000
Hi. I hope you can help. On June 15th, I took a $10,000 distribution from my Rollover at Merrill Edge. I needed the money and never intended to return it (roll it back over within 60 days). 57 days ag… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
From my one IRA account i'v taken several distributions this
from my one IRA account i'v taken several distributions this year on different dates within the last 60 days, in july and august can i put money from different dates."… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
18,385 satisfied customers
. I am not a wealthy woman. I am 66 years old. Retired
Hello. I am not a wealthy woman. I am 66 years old. Retired from owning my own ad agency for 31 years. The corporation still exists, I still work with two non-profits occasionally, producing their tel… read more
abci168
abci168
Principal
27 satisfied customers
HiI'm a bit confused on a tax statuteI am disabled and
Hi I'm a bit confused on a tax statute I am disabled and was released from my job, where I received my 401k and rolled it into and IRA with Etrade. I dispursed 24k of it on 11-5 they say It has to be … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,665 satisfied customers
My mom retired this year. She took $60,000 out of her IRA
My mom retired this year. She took $60,000 out of her IRA to buy a condo and was going to replace it in her IRA with proceeds of the sale of her home. It looks like the home won't close on time for he… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
On Aug. 28, 2012, I "cashed out"/received $165K from my IRA
On Aug. 28, 2012, I "cashed out"/received $165K from my IRA to buy a house (1st time home buyer) with the understanding that it wouldn't be taxed if I put the money back into the IRA account within 60… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I withdrew 10000 from my IRA in December 11 and 3000 in January
I withdrew 10000 from my IRA in December 11 and 3000 in January 12. I know that I can normally rollover the entire amount back into the IRA within 60 days of the first withdrawal in December. But beca… read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
This is a question about Roth IRA law. It is very important
This is a question about Roth IRA law. It is very important that the answer I get is 100% accurate for the current law. I have a short-term need to raise cash for a home purchase. I have a lot of mone… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
I AM 51 YEARS OLD, AND TOOK A PREMATURE WITHDRAWAL FROM AN
I AM 51 YEARS OLD, AND TOOK A PREMATURE WITHDRAWAL FROM AN IRA ACCOUNT I HAVE WITH SCOTTRADE. IT IS MY UNDERSTANDING THAT IF I PUT THAT AMOUNT OF MONEY BACK IN THAT ACCOUNT IN LESS THAN 60 DAY'S I WOU… read more
Bill
Bill
Master's Degree
2,278 satisfied customers
I recently took $30,000 out of my IRA thinking I needed it ...
I recently took $30,000 out of my IRA thinking I needed it to live on. I am 62. I had 20% witheld for taxes. I would like to put some of it back in but not all. Can I put $22,000 back in without a pro… read more
Christopher Phelps
Christopher Phelps
Sole Practitioner
Master Degree
1,180 satisfied customers
I am 62 and I have three traditional IRAs plus a ...
I am 62 and I have three traditional IRAs plus a regular brokerage account at TDWaterhouse. I took a large distribution from my IRA 1 account in order to buy a home (not my first) with a non-contingen… read more
Steven Weinstein, Esq
Steven Weinstein, Esq
Attorney
Post-Doctoral Degree
54 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x