misapplied deposit
An IRA administrator deposited a customer’s non IRA money into her IRA account in 2012. It sat there for some time earning at the portfolio rate. When it was finally discovered when the 5498 was issued in 2013, the administrator took responsibility for removing the misapplied deposit. How should this be reported to the IRS? How should the earnings on the deposit be handled?
Thanks,
Jim
Permalink Submitted by AdvantaIRA Team on Wed, 2013-07-10 13:58
The administrator should remove the non-IRA cash and NIA (net income attributable) and do a corrective 5498 filing with the IRS.
Permalink Submitted by JIm Frazin on Thu, 2013-07-11 05:43
Thanks, j