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Subject:  Re: Technical IRA Questions Date:  2/18/2011  5:39 PM
Author:  BruceCM Number:  68484 of 80991

You are a bit confused on how an IRA is set up and rules governing withdrawals. Let me go through and point out a few things so that you might better understand your situation.

I have a Rollover IRA in my name, and a Traditional IRA in my wife's

A rollover IRA is a Traditional IRA (TIRA)...there is no difference.
And you could not hold an IRA in anyone's name other than your own, although each IRA should have a named beneficiary and a contingent beneficiary.

I took a non-qualified distribution of the entire account balance

I assume you mean you took a withdrawal prior to age 59.5? If so, this is really not "non-qualified", as would be the case of a Roth IRA withdrawal...its just an early withdrawal that will be subject to a 10% penalty on the amount you have to include in your gross income on your tax return for that year.

the balance left following the non-qualified distribution was $0.02 which has sat untouched in the account since 2004. I would have filed a Form 8606 in 2004 if required (I'd have to pull my taxes to verify, and don't have access right now); but definitely have filed anything on this account since then.

Why do