Thx dMertz....it so happens my custodian has told me today I do not have to pay the 10% penalty from my own fund, rather, they will handle that. My issue is I still have a potential tax liability of $22k, due to this 1099-R, showing on my Turbo Tax 1040.
Not sure how them handling that will lower my bill in Turbo Tax? I guess that will count the same as a full rollover, which will do the trick.
I do have another question for you, related to this, if you don't mind. I'd really like your POV.
When I mistakenly moved my Roth IRA fund to a non IRA fund, it triggered both a longterm and short term capital gain. This mistaken transfer was in Nov and led to my self cert letter. The plan is to move these funds from the wrong non IRA account back to a Roth IRA account with my custodian. I am not 59 and a half.
Will I still have to pay taxes on these capital gains? I've received two different points of view. The custodian says "yes" I will. Another tax expert say "no" I should not have to, as I have paid taxes on the Roth already.
As I want to move these funds back to a ROTH, I am hoping I do not have to.......Pls advise your thoughts here?
Much thx, dMertz....
