I pulled IRA funds for RE transaction, 60 days up in 2019.....

[Ryan Moore]

End of November, I withdrew money from my IRA to fund a real estate transaction. I was informed that I can withdraw funds from my IRA once per year and not be taxed/penalized as long as it gets back into the IRA within 60 days. That 60 days is not up until January 2019. If I do not get money back into the IRA before end of 2018, will I have to pay taxes and penalties for my 2018 taxes and then my 2019 taxes will have that reversed? Or will I not have a taxable event in 2018 since the 60 days carries over into 2019?

[Brian Eastman]

@Ryan Moore

You have until 60 days from distribution to return the funds to the IRA.

Your IRA Custodian will be reporting the 2018 distribution and issuing a 1099-R.

You will be returning the money to the IRA in 2019 but before your 2018 tax filing date, and will be able to indicate this rollover on your 2018 1040.

You will not be required to pay taxes so long as you do in fact return the funds to the IRA.