topic Wired 401K money to Etrade in 2022, just found out it was not a 401K but an ainvestment acct. Also trans 2 other 401K into this acct in 2023 How can I fix this in Retirement tax questions

Wired 401K money to Etrade in 2022, just found out it was not a 401K but an ainvestment acct. Also trans 2 other 401K into this acct in 2023 How can I fix this

cateyrat — Wed, 30 Oct 2024 22:27:45 GMT

I sent request to Etrade for 60 day rollover waiver, opened a new IRA, was told cannot accept contributions for tax year 2023, can't do it online as limited to only $6,000 as a regular contribution

Re: Wired 401K money to Etrade in 2022, just found out it was not a 401K but an ainvestment acct. Also trans 2 other 401K into this acct in 2023 How can I fix this

dmertz — Wed, 30 Oct 2024 22:50:11 GMT

The rep at ETrade was apparently confused as to what you were trying to do. What you are trying to do is complete a late rollover under IRS Rev. Proc. 2020-46 self-certification that you would qualify for a waiver of the 60-day rollover deadline. This is not a regular contribution that would be subject to any contribution limit, not a contribution for 2023. It's a rollover. It's up to ETrade to accept or deny your self-certification. Because self-certification requires you to provide a written self-certification to ETrade as described in the Rev. Proc., it's doubtful that this could be done online.

https://www.irs.gov/pub/irs-drop/rp-20-46.pdf

If ETrade accepts the self-certification and allows you to complete the rollover in 2024, the 2024 Form 5498 from the IRA will show the amount in box 2 as a rollover contribution but will also report the amount in box 13a with code SC in box 13c. Given that more than one late rollover is involved, you would likely need to submit a separate self-certification for each rollover and I'm not sure how they would complete box 13b of the Form 5498 since distributions from multiple years are involved.

If ETrade denies acceptance of the self-certification, you could try another IRA custodian.

Re: Wired 401K money to Etrade in 2022, just found out it was not a 401K but an ainvestment acct. Also trans 2 other 401K into this acct in 2023 How can I fix this

cateyrat — Thu, 31 Oct 2024 01:15:13 GMT

I did submit the paperwork for the extension of the 60 day rollover for each of the accounts. I will call tomorrow and speak with another rep and clarify what I am requesting....I think the agent I spoke with thought maybe I was trying to do a regular contribution....but not sure why she didn't look at the forms for the extension. Thanks for your help! Will update tomorrow.

Re: Wired 401K money to Etrade in 2022, just found out it was not a 401K but an ainvestment acct. Also trans 2 other 401K into this acct in 2023 How can I fix this

cateyrat — Mon, 11 Nov 2024 17:38:56 GMT

I finally got the original funds transfered back into an IRA. Now I have a huge question....when the funds were in the wrong account I bought and sold stocks, some shorts some longs and ended up making $160,000.00. Am I able to roll over any of these profits into my IRA's or am I stuck paying short term capital gains on these?

Re: Wired 401K money to Etrade in 2022, just found out it was not a 401K but an ainvestment acct. Also trans 2 other 401K into this acct in 2023 How can I fix this

dmertz — Mon, 11 Nov 2024 21:30:17 GMT

"Am I able to roll over any of these profits into my IRA's or am I stuck paying short term capital gains on these? "

Only the amount originally distributed from the 401(k) can be deposited into the IRA as the nontaxable rollover originally reported on your 2022 tax return. What you completed is a late rollover of only those funds. The results of the trading outside of the IRA must remain outside of the IRA.

Re: Wired 401K money to Etrade in 2022, just found out it was not a 401K but an ainvestment acct. Also trans 2 other 401K into this acct in 2023 How can I fix this

cateyrat — Tue, 12 Nov 2024 02:08:12 GMT

Thanks for all your help...appreciate it!!!