Federal Receivership
An acquaintance says that her IRA is subject to a federal receivership. If she is required to turn over funds from the IRA, will that be treated as a taxable distribution?
An acquaintance says that her IRA is subject to a federal receivership. If she is required to turn over funds from the IRA, will that be treated as a taxable distribution?
Permalink Submitted by Alan - IRA critic on Fri, 2020-06-19 23:10
Yes, the distribution will be taxable, but if the IRS levies the IRA the 10% penalty will not apply. The person therefore should not voluntarily take an IRA distribution if under 59.5.