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It's unclear whether you're talking about a withdrawal or simply a rollover. "OK, so I withdrew the funds from my Roth, had them withhold enough to get to the safe harbor, and will roll it over into
another Roth IRA." If it's a rollover, done within the prescribed 60 days, it is not a taxable event, simply a repositioning from one Roth account to another Roth account. By taking custody of the assets instead of having them transferred directly (a trustee-to-trustee transfer) you have exercised a privilege that can be done only once per calendar year, if I recall correctly. By deferring the deposit until 2002 you use up two years worth by initiating the process in one calendar year and completing it in the second year.

You also note that "...The withdrawl was less than my contributions, so I don't believe I'll have any tax liability." The amount put in motion should not constitute a taxable event, regardless of how much it is, as long as it is housed in another IRA account within the prescribed time period.

The long and short of this is that you are in fact doing nothing more with the money than transferring it from one custodian to another custodian. That's why it is not considered to be a taxable event.

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