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Roth IRA Withdrawal and Replacement

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  • Roth IRA Withdrawal and Replacement

    Hey all,

    This is a very hypothetical question, but wondering in the event something extraordinary were to occur during fellowship application/interview season.

    If I needed to withdraw from my Roth IRA, I understand that I could return up to that year's maximum ($6000) in contributions, not earnings, as long as it was back by that year's Roth contribution deadline.  My question is that if this happens, do I lose the ability to contribute Roth money as I would otherwise?  For example, let's say you take out $3000.  That $3000 needs to go back by April.  But can you also make the normal $6000 contribution (So Return $3000 and make normal $6000 for $9000), or does this now subtract from your ability to contribute normally?

    Again, very hypothetical, but want to make sure everything is covered in the event of an emergency during this unique application time. Thanks for all help.

  • #2
    The month of April has nothing to do with it. Money withdrawn from an IRA must be redeposited within 60 days or it must stay withdrawn unless you "self-certify" under IRS Rev Proc 2016-47. You can take a direct withdrawal and redeposit $ from an IRA once per year under the 60-day rule.

    Yes, you can still make that year's IRA contribution. Whether you have taken a distribution in that year is irrelevant.

     
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