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Financial Planning / Tax Strategies


Subject:  Re: Multiple rollover problems and 1099-R Date:  3/25/2008  5:57 PM
Author:  vkg Number:  99742 of 127544

Phil's advice is very good. Staying focused is important.

I do understand working with relatives that do not understand what they have allowed to occur. You really need the account statements. With April 15th approaching, it may not be possible to obtain all of the information in time. Carl may need to file an extension. The closer it gets to April 15th, the more overwhelmed the administrators are going to be with handling opening new IRAs and handling requests to recharacterize contributions.

What are the consequences of a second rollover?

There are two types of rollovers: trustee-to-trustee and distributions which are redeposited into an IRA within 60 days. Trustee-to-trustee rollovers are not restricted to once per year. Only distributions for which the account holder takes possession are restricted to once a year. Depending on how the check that Carl received was written, it is possible that both rollovers were trustee-to-trustee. Although unexpected the second set of 1099-Rs may be accurate.

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