Federal Receivership

An acquaintance says that her IRA is subject to a federal receivership. If she is required to turn over funds from the IRA, will that be treated as a taxable distribution?



Yes, the distribution will be taxable, but if the IRS levies the IRA the 10% penalty will not apply. The person therefore should not voluntarily take an IRA distribution if under 59.5.

Add new comment

Log in or register to post comments