@ExcessTurbo wrote:
I returned to the brokerage all the money I received plus all the money that was withheld for federal and state taxes. The brokerage gave me credit for the grand total. The money allocated to withheld taxes is in my account.
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The only way the IRS and state would have the "withheld" money is if the brokerage sent the money to them and did not debit my account. That seems unlikely.
Unlikely? Of course tax withheld was sent to the IRS (U.S. Treasure to be exact). They do not "debit" your account, the IRA custodian has already done that.. The money you received form the distribution was the 1099-R amount minus the box 4 amount that was sent to the Gov.
If you rolled over the box 1 amount then you replaced the box 4 amount with other funds so now you are due a refund of that amount withheld.
If you only rolled over the amount you received (box 1 minus box 4), then the box 4 is still a refundable credit.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
