ira rollover

Submitted by b s on Thu, 2020-02-13 01:05

i have a ira ,distubion by mistake at the bank then i had them rolled it over with in the 60 days. but the amount wasnt the same.a little less. how to i settle the issue// help thanks



Submitted by Alan - IRA critic on Thu, 2020-02-13 03:10

  • You report a rollover of the amount rolled over, and report the rest as taxable income. The taxable income portion is subject to a 10% penalty if you are under 59.5. You must be very careful now to only move funds by direct transfer, since you are only allowed one rollover over a 12 month period.
  • Note: If the 60 days has not yet expired, you can still roll over the rest and avoid any taxes. The one rollover limit is counted by the distribution and this was only one distribution, so you are OK if still within 60 days.
  • If the 60 days has expired, and the amount not rolled over is large enough, you might qualify for an exception if the problem was the custodian’s fault.

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