Jennifer, thank you for your answers. The funds were paid to him in 2025, and although we are not talking a lot of money, he is retired and hoping there will be no additional penalties on this money.
I do not believe it is a Roth IRA, as it was paid through the company and probably before Roth IRAs were set up.
Either way, since I do our taxes (I was a tax preparer in another lifetime), I am inclined to just claim the funds as income for 2025 as a distribution and see if the IRS comes back with any penalties. Should I do that or should I follow up with you in January and see what else might be done on the taxes? We should get a 1099 at the end of the years with a bit more information on it than we have now.
