Distribution from Roth

[Guest mkerr225]

I recently took a distribution from my Roth and was looking to roll it over into a rollover account. Can a distribution from a Roth be placed into a rollover account? If not, what type of penalty and tax consequences are there?

[John G]

Why did you take a distribution from a Roth if you were not planning to use the funds? You do not say if you took a premature or qualified distribution. If you are under the 60 day time period, you may be able to redeposit the funds in a Roth, but these rules are relatively complicated. You should immediately call (1) your custodian and (2) your tax accountant or tax advisor.

Folks! Think twice before you take any major action on a Roth or IRA. If you are not 100% confident that you understand the rules, call your accountant. If you are completely confident - call your accountant anyway. The penalty for a mistake can be very costly compared to an hour of professional help.

I am not an accountant. I have read IRS pub 590 three times and read many of the technical articles at ROTHIRA.com ..... but I spent a number of hours with my accountant before I ever did an IRA conversion in 1998.