topic Underpayment from annuity contract during IRA rollover in Retirement tax questions

Underpayment from annuity contract during IRA rollover

ralaine — Wed, 19 Jan 2022 23:54:57 GMT

I rolled over, through my finical advisor, all of an annuity from one finical company to another earlier in 2021. Just cost a letter along with a check for over $1000 from the first finical company stating that upon a recent review they identified an error that resulted in an underpayment to me. My question is how to I handle this $1000. What document should I be getting that indicates this money and how to I address this extra $1000 in turbo tax?

Re: Underpayment from annuity contract during IRA rollover

Critter-3 — Thu, 20 Jan 2022 00:01:52 GMT

Contact them to find out what form you're going to get ...then you will know how to handle it.

Re: Underpayment from annuity contract during IRA rollover

fanfare — Thu, 20 Jan 2022 05:05:20 GMT

If the $1,000 was from a tax-deferred account, you have 60 days to do a rollover for that money.

Otherwise it becomes a distribution.

If the custodian made an error (as you say) you can get a waiver of the 60-day rollover rule for your deposit.

Re: Underpayment from annuity contract during IRA rollover

ralaine — Sat, 22 Jan 2022 12:32:44 GMT

Thank you for the reply. I have talked to my financial advisor and they are going to get me the information.

Re: Underpayment from annuity contract during IRA rollover

ralaine — Sat, 22 Jan 2022 12:39:38 GMT

Thank you for the reply. I was wondering if there was a way to rollover the $1000. I will get with my financial advisor to see if they think that is the way to go.