Confused and Mislead on transfer/roll over
What I am about to explain all happened in a 45 day period last year:
Because I wanted to be able to invest in crypto, I opened a ROTH IRA account with TradeStation. I filled out a form to roll over my Roth 401k (Walmart) to the TradeStation IRA to fund the account. I was contacted that the form was not correct for the institution I was sending it to. So, through what I know now as some bad advice from Merrill Lynch (Walmart Roth 401k), I had the rollover funds wired to my bank account and then I wired them to Tradestation with the idea that I had 60 days to make the transfer of funds. Upon funding of the account, I found that Tradestation had falsely advertised their investment vehicle. So, I decided to open a self-directed Roth IRA and transfer the funds to it. When I contacted TradeStation to do the transfer, once again was given incorrect information of how to transfer (They said they could only transfer funds to the original funding institution(my bank)). So, once again I had the funds wired to my personal bank account and wired them to my new Roth IRA custodian of my self-directed Roth IRA.
I still am unclear how messed up this is or if it is even salvageable. I just hope I am not taxed (possibly 2-3 times) over this.
The only reason I am now questioning the whole mess is that I have received 2 different 1099-R forms from Merrill and Tradestation.
What should I do now if I can do anything?
Permalink Submitted by Alan - IRA critic on Fri, 2024-02-02 03:32
You probably received an H coded 1099R from ML for a direct rollover to your Roth IRA, and a 1099R coded J if you are under 59.5 from the Roth IRA custodian. If you completed a 60 day rollover of the J coded 1099R to another Roth IRA, you are OK and no taxes are due. However, you have used up your one permitted rollover for the 12 month period starting on the day you received the distribution from the Roth IRA. Please advise if this does not describe your distribution and rollover transactions.
Permalink Submitted by Russell Bantin on Fri, 2024-02-02 03:55
I’m 60… Code B7 from ML and T from Tradestation