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Financial Planning / Tax Strategies
|Subject: IRA Withdrawal/Rollover||Date: 9/27/2000 10:59 AM|
|Author: venny||Number: 40360 of 125423|
Does anyone have experience with a rollover from an IRA account. More explanation follows.
Subject age 69 - withdraws a considerable sum from IRA. Use $200k in value of several securities (stocks). Within sixty (60) days decides that 1 of the withdrawals of stock - value $10k for 1000 ($10/share) shares at time of withdrawal will be rolled over or reversed to the original IRA.
1) Is the transaction for 1000 shares @ $10/sh equal to $10000 reversed?
2) Is the rollover amount calculated at the value of the share price on the date of the reversal? Example: date of reversal 45 days from withdrawal, price of stock $8, 1000 shares equal to $8000?
The brokerage firm will report the full withdrawal to the IRS & then report the rollover amount on a different form to arrive at the net amount to be used for tax purposes. The brokerage firm reports the rollover amount on IRS form 5498.
I can only learn that the transaction can be reversed (rolledover). What is definition of transaction?
Any help will be appreciated. I also understand this is not an unusual procedure but yet cannot find a definitive answer that is substantiated with data.
Thank you Venny
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