Can You Put Money Back Into a Roth IRA After Withdrawal?

A Roth Individual Retirement Arrangement (IRA) is a retirement savings account that allows for tax-free growth and tax-free withdrawals in retirement. It is possible to put money back into a Roth IRA following a withdrawal, but this action is governed by Internal Revenue Service (IRS) rules and specific deadlines. The ability to redeposit funds depends on how quickly the money is returned. Navigating these regulations correctly is necessary to avoid potential taxes and penalties.

Using the 60-Day Rollover to Return Funds

If you take a distribution from your Roth IRA, you can return the funds, but the transaction is considered a 60-day rollover. This rule applies whether you withdraw only your original contributions or a mix of contributions and investment earnings. To avoid tax consequences, the exact amount withdrawn must be redeposited into an IRA within 60 days of receipt.

While your own contributions can always be withdrawn from a Roth IRA tax- and penalty-free, any earnings withdrawn are treated differently. If you are under age 59½ and your withdrawal includes earnings, you must return the entire amount, including the earnings, within the 60-day window. Failing to do so will result in the earnings portion being treated as taxable income, along with a 10% early withdrawal penalty.

The IRS allows you to make only one 60-day rollover from all of your IRAs—including Traditional, Roth, SEP, and SIMPLE IRAs—within any 12-month period. This limitation is applied by aggregating all of your IRA accounts, not on a per-account basis. For example, if you perform a 60-day rollover from a Traditional IRA, you cannot perform another from your Roth IRA within the same 12-month period.

This rule applies only to 60-day rollovers where you take temporary possession of the funds. It does not apply to direct trustee-to-trustee transfers, where money moves between financial institutions without you ever receiving it. Violating the one-rollover-per-year rule makes any subsequent rollovers invalid, and the withdrawn amount becomes taxable income, potentially subject to penalties.

Process for Redepositing Funds

The process for returning funds requires contacting your IRA custodian, such as a brokerage firm or bank, to inform them you are completing a 60-day rollover. This communication ensures the custodian uses the correct transaction code to report the deposit to the IRS, preventing it from being flagged as an excess contribution. The custodian will also guide you on the deposit method, whether by electronic funds transfer or check.

Your financial institution may require you to complete specific paperwork to document the transaction. After completing the deposit, request and retain a confirmation statement from the custodian that shows the transaction was processed as a 60-day rollover.

Requesting a Waiver of the 60-Day Rollover Deadline

If you miss the 60-day deadline for a rollover, the IRS may grant a waiver under certain circumstances. Relief is for situations beyond a taxpayer’s reasonable control. Acceptable reasons can include an error made by the financial institution, a lost distribution check that was never cashed, a death in the family, or a severe illness that prevented you from completing the rollover in time.

There are two primary methods for obtaining a waiver. The first is self-certification, which can be used for specific reasons outlined by the IRS. This process involves submitting a letter to the financial institution certifying that you meet the waiver criteria. The institution can then accept the late rollover, though the IRS can review the certification’s validity during an audit.

The second method is to apply for a private letter ruling (PLR) from the IRS. This is a more formal and costly process, requiring a user fee, and is used for situations not covered by the self-certification reasons. A PLR is a written determination from the IRS that applies the tax laws to a taxpayer’s specific set of facts.