Can anyone suggest a Traditional IRA to do a rollo...
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azafar6
Level 2

Can anyone suggest a Traditional IRA to do a rollover of a Qualified plan loan offset (code 1M in form 1099-R)?

Scenario:

I have a form 1099-R with code 1M (Qualified plan loan offset). I do not have a Traditional IRA. I only have a 401-K from my previous employer from which I received the form 1099-R.

 

Question:

Can you please suggest a Traditional IRA that I can open online and deposit the amount online as well?

I am looking to do the rollover to avoid penalty and additional income tax.

2 Replies
Critter
Level 15

Can anyone suggest a Traditional IRA to do a rollover of a Qualified plan loan offset (code 1M in form 1099-R)?

Well since you only have 1 day left to make the rollover contribution may I suggest you go to a local bank or use an ONLINE broker to set up and fund the account TODAY.   You can change IRA custodians later if needed but you have an immediate deadline of TODAY. 

dmertz
Level 15

Can anyone suggest a Traditional IRA to do a rollover of a Qualified plan loan offset (code 1M in form 1099-R)?

If you file a request for filing extension for your 2019 tax return, the deadline for completing the rollover of an offset distribution (code M) is extended to October 15, 2020.  You had better request the filing extension, complete the rollover of the offset distribution, then file your 2019 tax return.  Even though you request a filing extension, your 2019 balance due (or something close to it) is still required to be paid by July 15, 2020.

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