Reporting returned portion early distribution.

Submitted by Kevin DeNardo on Tue, 2010-02-02 19:14

Hello,

Client took out money for home purchase and upon closing, returned (withing the 60 days) a chunk to his Simple IRA. The returned money would show on his 5498 and this would be square him with the IRS, no?

Thanks in advance,

Kevin

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Permalink Submitted by Alan Spross on Tue, 2010-02-02 19:39

Right. He still needs to report the distribution and rollover on line 15 of Form 1040. Most critical is that he met the 2 year waiting period prior to distribution. Be sure the 1099R does not have an “S” in Box 7.