Check withdrawed in IRA instead of individual account
Client erroneously had us withdraw a check from the IRA in 2013 ,only recently found error when doing her taxes.
Schwab is not being cooperative in correcting the check from the IRA to the individual account.
Any help on how this should be handled
Thanks
Al
Permalink Submitted by Alan - IRA critic on Tue, 2014-04-22 17:51
If the error was not Schwab’s, then Schwab cannot be held responsible for the error. Since the 60 day rollover period is long gone, the only solution would be to apply for an IRS letter ruling to extend the 60 days. Since client evidently needed and used these funds for something, the legal and filing costs of the letter ruling may not be worth it unless the amount is substantial.