IRA Distribution
Had a self-directed IRA in which I had two investments, one being an oil & gas partnership which went bust so I cancelled the IRA account in 2015 to get rid of the high fees being billed annually . However, in closing the account I over looked the other Real Estate Investment and it got terminated also. Then I get a 1099 for the distribution of the whole Real Estate Investment. My question is if somehow that Real Estate Investment can be put back in the iRA and not counted as fully taxable?
Dennis
Permalink Submitted by Alan - IRA critic on Mon, 2016-04-11 17:51
You can’t without a private letter ruling of approval from the IRS, and the fees for those have now been raised substantially. Unless you were very ill or had some highly justifiable reason for the IRS to approval extending the rollover period well beyond 60 days, this would be a waste of time and money. And with respect to the PLR fee and additional legal fee to prepare the PLR request, you should also consider the amount of the taxable distribution (1099R). I assume you still have the investment, but it is now in a taxable account, so you would also face the hassle of K1 reporting for one of these investments on your tax return.