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Retirement tax questions
Thank you. I am not concerned with the 60 day timeframe. This was all done in a matter of weeks.
What I am concerned with is if this qualifies as a rollover or not. Fidelity cashed out his IRA totaling $742. He received a check for $594, and $148 was withheld for taxes. So at this point we would have a premature distribution and a penalty would apply.
BUT he cashed the $594 check, then wrote a check to open a new IRA for $742.
In short, we had what looked like a premature distribution from an IRA with taxes withheld but then reinvested the full amount. Is that a rollover or considered a premature distribution (with penalty) and a new reinvestment.
If a rollover, how do i report that?
‎February 14, 2024
7:21 AM