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Author: venny Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120799  
Subject: IRA Withdrawal/Rollover Date: 9/27/2000 10:59 AM
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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.

Questions follow:

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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