IRA Distribution after Transfer
I received a $120,000 cash settlement /payout from my deceased husband’s employee retirement on Nov 15, 2019. I placed this money into a Capital one 360 retirement account. What is the amount of distribution must I take in 2019 to avoid a penalty. I am 79 years old.
Permalink Submitted by Alan - IRA critic on Thu, 2019-12-26 19:42
Was the 120k after 20% withholding was taken out of the gross amount? Is the capital one account an IRA, and if so are you titled as the owner of that IRA? If the employee retirement was a qualified plan, there was a beneficiary RMD due for 2019. If that was not distributed separately, then part of the amount you received was your 2019 RMD and that amount would not be eligible to be rolled into your IRA. If it was, then you have an excess contribution to the IRA. Therefore, the answer depends on this additional information about the plan you inherited, and how the plan handled the 2019 RMD. Did you inherit this plan in 2019?