- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Will I be declaring income twice on the same IRA funds?
Accepted Solutions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Will I be declaring income twice on the same IRA funds?
If the her bank sent a check made out to you personally, you have received a distribution from her IRA (which should have been reported to you on a code 4 Form 1099-R) that is not eligible for rollover and therefore not eligible to be deposited into an inherited IRA. The deposit of that check into an IRA constitutes a new regular contribution to an IRA owned by you, not an inherited IRA, despite the titling of the account, and is an excess contribution to the extent that you are not eligible to make the new regular contribution. Any excess contribution is subject to a 6% excess contribution penalty each year the excess remains in the account.
You may have a legal case against your mother's bank. It may be wise to seek legal counsel.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Will I be declaring income twice on the same IRA funds?
If the her bank sent a check made out to you personally, you have received a distribution from her IRA (which should have been reported to you on a code 4 Form 1099-R) that is not eligible for rollover and therefore not eligible to be deposited into an inherited IRA. The deposit of that check into an IRA constitutes a new regular contribution to an IRA owned by you, not an inherited IRA, despite the titling of the account, and is an excess contribution to the extent that you are not eligible to make the new regular contribution. Any excess contribution is subject to a 6% excess contribution penalty each year the excess remains in the account.
You may have a legal case against your mother's bank. It may be wise to seek legal counsel.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Will I be declaring income twice on the same IRA funds?
Still have questions?
Or browse the Forums