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Tax Law (Questions About Taxes)/60 day rule regarding IRA withdrawal

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Question
Hello,
I've tried doing my own research but could not find the answer to my question anywhere, so I am grateful for you time.  I've read about the 60 day rule regarding IRA rollovers and how one can basically use it as a short term loan, i.e. if one were to deposit the "borrowed" amount back within 60 days, there is no tax penalty.  First of all, is my interpretation of the 60 day rule correct?  Secondly, if this withdrawal were to occur say on December 1, 2014 then 60 days would fall in 2015.  How would this impact my 2014 taxes?

Thanks

Answer
yes, you have it right.

you can take out x $ on day one and as long as you put x dollars back into an IRA (not necessarily the same ira) you do not pay tax on the distribution - even if that 60 day window crosses over a calendar year (withdraw on dec one and deposit back jan 15 is under 60 days)>

caveat - you can only do one 60 day per year (some question at court if you can do one per account but right now, the general rule is that you can only do one per year period.  Still being litigated but the irs seems to have the upper hand on that one) - key is that you cant take oout 100 from ira a in jan.  and 100 from ira b in feb and put b 100 into a to pay off a loan and then in march take from either a or c to fund the 60 day window in b...  you lose on that one.

the other caveat is that the custodian is supp0sed to take out 20% for IRS withholding.  this can be a good thing or a bad ting. it is treated as paid in pro rata so if you need to make an estimated payment, this is good.. but you have to make up that 20% when you pay back the 60 day "loan"  so you have to factor that in.

If you take out 100, you will only get 80 cash. (20 to the irs)... you can adjust your pay withoolding the rest of the year and not have any taken out of paycheck will offset. but dont forget the 20%  

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