Feb 12

What happens if the term is inadvertently dropped ?


2 comments so far...

  • Peter C Said on February 12th, 2010 at 12:50 am:

    An IRA rollover is an account to receive a Transfer of Assets from a qualified retirement plan, and the assets may be treated differently in the long term than a regular IRA account. Best to split the two, and credit any new contributions to the separate IRA account. See your tax advisor for more info on this.

  • jon b Said on February 12th, 2010 at 1:05 am:

    It is important to note that a contribution into an IRA is a “Rollover” so that it isn’t 1) subject to taxes that could be triggered from the withdrawal transaction, and 2) so it isn’t subject to the contribution limits set forth annually, and 3) so it gets proper tax reporting at the institution that is accepting the rollover.

    If the contribution isn’t coded properly, you may have a tax liability, as well as tax penalty depending on the amount, and your age. It is best to find out before the busy tax season if this was handled properly by double checking with the holder of the IRA.

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