IRA Rollover for Home Purchase Closing

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wholbrook
Posts: 1
Joined: Mon May 15, 2017 11:55 am

IRA Rollover for Home Purchase Closing

Post by wholbrook »

My family has recently purchased a home and was able to get our current home under contract 3 days later. As we put together our sources for closing costs, we were thinking about using a Vanguard Roth IRA rollover to pay our closing costs and immediately put that money back into the IRA from the sale of our current home two days later. We anticipate sufficient funds from the sale of our current home, so this should not be an issue. Can money withdrawn from one IRA be rolled over to the same IRA within the 60 days? Or does it have to be a different IRA?
CWhea1775
Posts: 50
Joined: Thu Jan 28, 2016 3:45 pm

Re: IRA Rollover for Home Purchase Closing

Post by CWhea1775 »

You can roll money back into the same IRA.
Alan S.
Posts: 9979
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: IRA Rollover for Home Purchase Closing

Post by Alan S. »

You can do this only ONCE for all your IRAs in total over a 12 month period. So if you rolled over a prior distribution less than 12 months ago, you cannot do another one now. Likewise, if you are OK to do one now for this closing, you cannot do another one for another 12 months.

You will have to report this rollover on your tax return, as you will get a 1099R.

The risk here is that something blows up with your current home sale, you don't have the money to complete the 60 day rollover, and you are stuck with the Roth IRA distribution.
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