The IRS is quoted (2022) as saying the following:
Firstly – if you have not elected out of withholding, your plan administrator or IRA trustee will withhold taxes from your distribution. Then, if you later roll the distribution over within 60 days, you must use other funds to make up for the amount withheld.
Additionally – if you roll over the full amount of any eligible rollover distribution:
– Your entire distribution would be tax-free
– You would avoid the 10% additional tax on early distributions
Engage with us today to learn how the IRA rollover rules work to reduce your taxes!
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