My husband just received a bill from the IRS for a penalty withdrawal of a retirement account. He never withdrew the funds they didn't roll over after job change. Help?

Forum|Forum|7 years ago
September 15, 2019
4 replies
39 views

We are being penalized/ charged for not being aware that this money did not automatically roll into another account plus we were never notified of these funds.

TurboTax Self Employed Online

macuser_22

Alumni - Champ

Then what happened to the money? The only way that the IRS would bill you is if a 1099-R was issued and it was not reported on your tax return. Even if a rollover, the IRS can assume that you took the money if it was not reported.

You should have some records that show where the money is. Once you find out what happened and get the records, call the IRS in the number in the letter and talk to them about it.

**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.**

VolvoGirl

Level 15

Did you have any loans against it? Did you get a copy of the 1099R? Ask the old plan about it.

macuser_22

Alumni - Champ

Many company plans will automatically roll a 401(k) into a Traditional IRA at a financial institution if you do not make other arrangements - they usually notify the employee of this when they leave the job. If they did that then they would have issued a 1099-R. Ask the company plan administrator.

**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.**