Return of IRA Distribution

[Guest jfreeborn]

I took a distribution from my Roth to purchase a first home. The distribution was less than my total contributions to the account and the account has been open for 6 years. The home buying contract fell apart and I am no longer in the market for a home. I took the distribution about 45 days ago.

My question: Can I return all of the money to the Roth? Can I return part of the money to the Roth?

[masteff]

You have 60 days to make a rollover. See IRS Publication 590: http://www.irs.gov/pub/irs-pdf/p590.pdf

You should call your investment firm immediately to get the paperwork moving so you don't go past the 60 days.

[Guest jfreeborn]

You have 60 days to make a rollover. See IRS Publication 590: http://www.irs.gov/pub/irs-pdf/p590.pdf

You should call your investment firm immediately to get the paperwork moving so you don't go past the 60 days.

Thank you very much

[Appleby]

I took a distribution from my Roth to purchase a first home. The distribution was less than my total contributions to the account and the account has been open for 6 years. The home buying contract fell apart and I am no longer in the market for a home. I took the distribution about 45 days ago.

My question: Can I return all of the money to the Roth? Can I return part of the money to the Roth?

Adding to Masteff’s response….You can return all, or you can return part of it.

The amount will be nontaxable, whether it is returned to your Roth or not, assuming your total distributions to date has not exceeded your contributions.

The 60-day is extended to 120-days, if the rollover is due to the delay or cancellation of the purchase or construction of the residence

[John G]

Good addition Appleby.... I don't think many folks are aware of the 120 day window for these circumstances.