Putting money BACK INTO IRA

Submitted by Marina Forgue on Wed, 2023-10-18 13:30

I took my money out of my rollover IRA. They sent over the check, but my company would not allow me to put it into my retirement account with them.

The check was issued on July 20, 2023, and it is now past the date where I can put the money back into my fidelity IRA account. I have to fill out a late rollover certification form. But I do not know which reason I need to put on this waiver form. I simply forgot to put it back into my account before the 60 day allotment time.



Submitted by Alan - IRA critic on Wed, 2023-10-18 15:00

Unfortunately, if that check was made out to you personally (not a direct rollover check) and you do not qualify for any of the reasons listed on the self certification form, there is no way to get those funds back into a retirement account. About all you could do if you are have not maxed out your workplace plan contributions is to increase those contributions, although there is only about 10 weeks left this year. You could also use the funds to increase contributions next year and/or make regular IRA contributions if you have not done so. Finally, check the penalty waivers list to see if you qualify to avoid the 10% penalty if you are under 59.5.

Submitted by Marina Forgue on Wed, 2023-10-18 15:30

What am I supposed to do with this check?  The reasons below do not apply to me, I believe.  When  do my taxes, will there be a big fine??  What are my next steps?An error was committed by the financial institution making the distribution or receiving the contribution.The distribution was in the form of a check and the check was misplaced and never cashed.The distribution was deposited into and remained in an account that I mistakenly thought was a retirement plan or IRA.My principal residence was severely damaged.One of my family members died.I or one of my family members was seriously ill.I was incarcerated.Restrictions were imposed by a foreign country.A postal error occurred.The distribution was made on account of an IRS levy and the proceeds of the levy have been returned to me.The party making the distribution delayed providing information that the receiving plan or IRA required tocomplete the rollover, despite my reasonable efforts to obtain the information.

Submitted by Alan - IRA critic on Wed, 2023-10-18 16:05

  • Since it appears that you do not qualify for the extended rollover period, you will have to report this distribution according to the 1099R you will receive in January. This will increase your taxable income and if you are under 59.5 and do not qualify for a penalty exception, you will also owe a 10% early distribution penalty. The following link lists the penalty exceptions. Use the IRA column:
  • Retirement Topics Tax on Early Distributions | Internal Revenue Service (irs.gov)
  • You can use these funds anyway you wish. Consider the suggestion made above, or you could invest the remaining funds after taxes in a taxable brokerage account.

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