I know this is outside the spirit of the 60 day rule for IRA Rollovers, but here goes anyway. We sold a house which will close in 45 days. We want to write a check for $30,000.00 as a good faith deposit on a new home. We don't have the 30 grand without cashing in a bunch of investments I would rather not cash in. We do have 30+ grand in an IRA that has check writing privileges. I would like to take the 30 grand from the IRA and deposit it into a bank checking account and write a check for the good faith deposit. When our home closes in 45 days replace the money in the IRA. Taxes will not be taken out when I take the money from the IRA. I am over 59.5 and younger than 70.5. I would like an explanation of the accounting that takes place. My feeling is that at the end of the year I will get a 1099 that represents the 30K distribution. How do I put the money back into the IRA? Surely it is not a contribution. What is the accounting that cancels out the tax liability.
Clarification would be greatly appreciated.
JAW