Randy Watson Posted October 7, 2008 Posted October 7, 2008 Can a participant take an in-service distribution and roll that distribution back into the same plan within 60 days? This doesn't appear to be prohibited by the Code or Regs, but I'm sure it would appear to be a little fishy to the IRS. Any comments?
J Simmons Posted October 7, 2008 Posted October 7, 2008 What was the 'trigger' allowing the in-service distribution? If it was hardship, then I don't think that can be rolled over. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
Guest Sieve Posted October 7, 2008 Posted October 7, 2008 Assuming there is an event permitting distribution from the plan, and assuming the distribution is one that can be rolled over (& hardships, as pointed out, cannot be), then rolling back into the plan within the 60-day rollover period is permitted, without limitation. Be careful of the 20% mandatory withholding becoming income if not replaced & rolled back in. Also, there are limitations for rolling over these "2 step" rollovers (distribution, followed by rollover/contribution) from and to IRAs (IRC Section 408(d)(3)(B)).
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