IRA Rules

Archive for October, 2007

Webster Tarpley WW3 Scenario if Iran is attacked …

Question: IRA 60 day rollover rule – regular IRA?

I borrowed from my IRA while waiting for a refinance to remodel our home (not our first house). I redeposited the early distribution on day 62 rather than day 60. Day 60 fell on a Saturday and the markets aren’t open. (It was from my mutual fund.) Am I still subject to the penalty and taxes (I’m 18 months short of 59 1/2)? Does the financial institution report the distribution?
I read somewhere that if you have high medical expenses you can get a waiver. We pay more than 7 1/2% of our adjusted gross in medical expenses and even more this year as we are caring for a very ill mother in law. Would that help?
Does it matter that I have proof the funds arrived on day 60?

Answer: Yes, penalty. This is a weird provision that doesn’t allow the following monday.

see:

http://www.virtualex.com/IRARollovers.html

2. Unlike most tax-deadlines, there is no extension granted if the rollover period ends on a weekend or holiday. So, for example, if the 60-day period ends on a Sunday, the rollover deadline is not extended to the following Monday.

Transfer of Funds to SD — “Trigger” a Distribution of MY Plan?

Question: How do calculate 10% excise tax on IRA withdrawl?

I think i have failed to pay the early withdrawl 10% tax on my 72T for some past years.

Answer: From my understanding and experience of this issue the IRS may attempt to assess 10% on all of the entire withdrawal since the additional withdrawal has violated the 72(t) exception. There is some question if they (the IRS) have the ability to catch the problem absent any other reason for them to have looked at the return. Therefore the best approach to this question may come from an understanding of how the problem came to your attention.

For the returns to have been filed correctly in the first place the preparer would have included a IRS Form 5329 and excluded the 72(t) portion on line 2 of that form and assess a 10% penalty on the remainder. If you wish to be correct you should file an amendment (1040X) to include the corrected IRS form 5329. But again the means by which you became aware of this oversight may dictate another answer.

Roth IRA: The New Rules (Part 2 of 2)