Thanks in advance for responding…

I am an “average joe” HS teacher that has a side gig to make a few extra bucks. Several years ago, I set up a SEP-IRA through Vanguard and made my annual contributions. All good for the first 3 years…

In July of 2018, I setup a “checkbook IRA” through a firm that specializes in this and rolled over my Vanguard account to the new custodian and then to the LLC checking account of which I am the manager.

Here comes the problem now….

In February of 2019, I was ready to make my 2018 contribution to the IRA. Since I was so used to just sending the money to Vanguard, I deposited the money DIRECTLY into the LLC checking account, not knowing I was first supposed to send to the custodian.

When I contacted the custodian to correct the issue, they refused stating it was a Prohibited Transaction and said that on September 1st, they would issue a 1099-R and cancel my IRA unless I gave them and opinion from a CPA or ERISA attorney stating that this is not a PT. I can easily withdraw the funds and send to them properly. My taxes are on an extension so I have not filed and believe that I can correct the error.

So…the short version is…I made a very simple error. All PT’s seem to point to an attempt to defraud by WITHDRAWING money. I was DEPOSITING money.

The other issue I have run into is that none of the attorneys/CPA’s I have spoken with have ever come across this issue before and are at a loss…

Can anyone help?? I have 9 days before I lose a major chunk of my retirement funds…