Traditional IRA

Suppose I want to deposit $5500 by tax day 2018 in order to qualify for a 2017 tax year deposit, but I don't have the cash at the moment.

Let's say I expect to have the cash within 60 days. And let's say my IRA currently has $10000.

Can I use the 60 day IRA borrow rule to withdraw $5500 from the account, then deposit that $5500 before tax day 2018 to count it for 2017 tax year, while still technically owing my IRA the $5500 I borrowed?

I would be withdrawing and redepositing the same $5500, ending up with the same $10k in the account, but I will be able to claim I deposited $5500 for 2017 tax year. I would then have nearly 60 days to come up with the $5500 I borrowed and deposit it, bringing the account up to $15500.

2 Answers 2


I think what you're proposing is doable. You would be making a contribution in the middle of a 60-day indirect rollover; I don't think there's any rule against that. A couple of things to keep in mind:

  • You can only do one indirect rollover per year (across all accounts)
  • When you withdraw the $5500, you might not get the entire $5500; they might withhold a part for taxes. I am not sure whether there is an option to not withhold. (For withdrawing from Roth IRA, there probably is an option to not withhold, but for Traditional IRA I am not sure.) If they withhold some and you don't get the full $5500, you must still re-deposit $5500 for the contribution and another $5500 for the rollover.
  • 401(k) ? Mandatory 20% withholding. IRA, no required Federal withholding. Commented Mar 24, 2018 at 19:38
  • 1
    @JoeTaxpayer , my 401k allows withdrawals with no tax held. I did that last year with a six-digit amount (I put it into Roth IRA). I don‘t know the laws, but on their website, the question where I decide ‘no tax withheld’ comes before the decision where the money goes.
    – Aganju
    Commented Mar 25, 2018 at 4:19

Make the 2017 contribution into a new IRA account, removing all doubt as to your intent.

  • 1
    But a rollover is also intended for you to move it to a new account too, so I don't see how this clears anything up.
    – user102008
    Commented Mar 25, 2018 at 0:36
  • Harper makes the point that if OP fears the deposit will be mistaken as the re-deposit, i.e. the return of funds, by opening a new account, he can be sure this won't occur. This might not be strictly necessary, but is a brilliant way to avoid sure an error. +1. Commented Mar 25, 2018 at 14:22

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