My wife had a retirement account in another state. They closed her retirement account and sent us a check less federal income tax and a 1099-R. Can I take that money and roll it into her ROTH IRA now that it has been taxed?

Run, do not walk, to www.irs.gov and download Publications 575 and 590. The process is called a "rollover," and must be completed within 60 days from when the check was issued. (I'm assuming here that the check was from a type of plan that can be rolled into an IRA. Check Pub 575 to be sure.)

If you have funds to make up the difference, you can roll over the gross amount, resulting in zero taxable income from the distribution and probably a refund of the amount withheld. If you only roll over the net proceeds of the check, you'll have taxable income in the amount of the withholding and you'll also owe a premature distribution penalty on that amount.

Please come back if there's something in the process you're not sure of.

TMF ExRO
Phil Marti