IRA Rules

Question: what to do when the brokerage firm reported my IRA as a distribution when i rolled it over to a bank?

I wrote a brokerage check directly to the bank I deposited the sep/IRA into and the bank reported the IRA as a rollover and the brokerage firm reported it as a distribution. Now I must pay twice the tax. I have to pay now for the distribution and later when I get the same money out of the bank on the same money?

Answer: It is somewhat puzzling that you posted this as a US tax question from New Zealand. So I will assume that this is a question for USA.

If you wrote a check from one IRA to another qualified account, just because the first reported it as a distribution does not necessarily mean it is taxable now, if it actually went to another qualified IRA within 60 days. Although, it would have been better to have done a direct transfer to remove all doubt about what you did, and to avoid any withholding. When you do your taxes, you will need to note the amount that you rolled over (or properly answer questions if you e-file). If there was any withholding and you did not add that back in from other sources within 60 days, the withholding would be subject to tax (and 10% penalty if under age 59.5).

IRS Publication 590 at irs.gov has all the rules for US IRAs.

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