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Thanks for the valuable advice!

Now I understand how the (401)k distribution works and have to deal with two issues:

1. Remove the excess IRA contribution before 4/16
2. Convince IRS that the stock distribution isn't an early withdraw although the 1099-R said so. I've contact the administrator at my old (401)k plan about re-classifing this portion of the distribution as a rollover and been refused.

My questions now are:

1. How to convince IRS that the stock distribution is a rollover not an early withdraw? Besides the deposit receipt of the stocks and account statement, what are other proofs needed?

2. How to handle the remove of the excess IRA contribution without triggering another unexpected IRA distribution causing me trouble in 2001?

3. Is there a way, besides annuities, I can keep the after-tax contribution growing tax-free?

BTW - The stocks were distributed to me because my new plan doesn't accept the stock rollover.


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