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Investing/Strategies / Retirement Investing
|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.