Can someone please explain this detail of the 60-Day IRA Rollover rule?

If you complete the rollover within 60 days, you report the total distribution but the taxable amount is reported as $0. It does not matter if the rollover straddles 2 tax years, however you should hold off on filing until after the rollover is complete. Instead of taking a cash distribution (which will be subject to 20% withholding) do a direct rollover.

Contact the custodian of the destination IRA and give them the details of the source IRA and let the custodians handle it. That way there is no withholding and you can't accidentally wind up with a taxable distribution. If you complete the rollover yourself, because of the 20% withholding you MUST come up with that money from other funds in order to do a rollover of 100% of the distribution.

If you only rollover the net distribution, the 20% withheld for tax becomes a taxable distribution. Whether you have the custodians do a direct rollover or do it yourself, you report the gross distribution on Form 1040, line 15a and the taxable amount of $0 on line 15b.

Due to it being a distribution for 2011, it is not over two tax years. IRS don't care when you complete the rollover as long as you do it within 60 days. Just don't file 2011 taxes until the rollover is complete (you have until April 15th for a reason).

You can not receive credit for IRA contributions in 2012 with cash that was required to be paid back under the rollover from 2011 (even if you complete the transaction in JAN/FEB/MAR. 2012).

The simple easy way would be to talk to the TRUSTEE of your IRA account and to the trustee of the new IRA account and let them do a trustee to trustee direct transfer of the FUNDS and then they would NOT have to withhold any $ amount out for income tax purposes and the 10% early withdrawal penalty amount and you would NOT have to worry about how you would have to report because they will be issuing the 1099-R and the form 5498 showing the direct transfer from one to the other at that time of the year that they do get it done for you. The old IRA trustee transfers the money to your new trustee instead of giving you a check. Publication 590 - Individual Retirement Arrangements Hope that you find the above enclosed information useful.

12/19/2011.

If you do a rollover, make sure you don't leave your fingerprints on the money. Have a trustee to trustee transfer and you won't have to worry about taxes on it until you start spending it.

The institution you take the distribution will probably send you a 1099 R for the distribution, and rolling it over into another year, you would probably need written proof from the new institution that you deposited the funds by a specific date(prior to the 60 days) to be able to claim it as a rollover in the first year when you do this on your own and not have the institution do it all, they have no recourse but to report it as a distribution if you let the institution handle it, they have the documentation and can supply it.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.