topic Distribution from an IRA to a non-IRA brokerage account in Retirement tax questions

Distribution from an IRA to a non-IRA brokerage account

4525 — Sat, 19 Feb 2022 21:36:55 GMT

I made a sizable distribution from a traditional IRA to a non-IRA brokerage account not fully understanding the Tax consequences. The purpose for the distribution was to allow me to invest in a fund (in my brokerage account) that has a minimum investment requirement. I now realize what a blunder that was as I now owe a substantial amount of taxes. Does anyone have any ideas of how I can undo this?

Re: Distribution from an IRA to a non-IRA brokerage account

VolvoGirl — Sat, 19 Feb 2022 21:45:31 GMT

Nope you are stuck with taxes and a 10% Early Withdrawal Penalty if you are under 59 1/2. You had 60 days to put it back.

Re: Distribution from an IRA to a non-IRA brokerage account

ColeenD3 — Sat, 19 Feb 2022 21:52:02 GMT

The only recourse is if you are in the 60-day window that allows a rollover. You would have to remove the money from that account and roll it into another Traditional IRA.