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Level 1

How do I avoid penalties on an IRA transfer that was completed prior to 60 days?

I closed one mutual fund IRA and transferred the money to another investment company. The mutual fund company that I closed the account with would not accomplish a direct rollover. They sent me a check and I immediately gave it to the new investment company (well within the 60-day limit). How do I reflect the fact that no tax or penalty is due because the transfer was within the rules 

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Level 2

How do I avoid penalties on an IRA transfer that was completed prior to 60 days?

"Most pre-retirement payments you receive from a retirement plan or IRA can be “rolled over” by depositing the payment in another retirement plan or IRA within 60 days. You can also have your financial institution or plan directly transfer the payment to another plan or IRA."

After you enter the information from your 1099-R there will follow questions concerning what you did with the distribution. The specific question concerning your situation would say, "What Did You Do With The Money From This Payer?", here is where you would choose if it applies, "I moved the money to another retirement account (or returned it to the same account). Continue through the interview questions.

See Image Below


For Additional Information Concerning Rollovers

https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-...

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Level 2

How do I avoid penalties on an IRA transfer that was completed prior to 60 days?

"Most pre-retirement payments you receive from a retirement plan or IRA can be “rolled over” by depositing the payment in another retirement plan or IRA within 60 days. You can also have your financial institution or plan directly transfer the payment to another plan or IRA."

After you enter the information from your 1099-R there will follow questions concerning what you did with the distribution. The specific question concerning your situation would say, "What Did You Do With The Money From This Payer?", here is where you would choose if it applies, "I moved the money to another retirement account (or returned it to the same account). Continue through the interview questions.

See Image Below


For Additional Information Concerning Rollovers

https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-...