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Author: GBoogieNY Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Undoing a foolish Roth distribution. Date: 2/9/2001 7:02 PM
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Is it possible to 'undo' an ill-advised Roth distribution? Or at least to avoid taxes and penalties?
My mom has moderate/severe sleep apnea. She just got diagnosed last month and has started treatment. Hopefully she will be just fine soon. Unfortunately, her sleep apnea left her with a lot of cognitive defecits. Memory loss, confusion, poor judgment, etc. Quite frankly I was worried that she had Alzheimer's. In fact, she had been prescribed Aricept, an anti-Alzheimer's drug. I was just about to get a power of attorney over her finances because she was no longer properly managing her money. The good news is she should be just fine in about 4-6 more weeks.
The bad news is that a few months ago (Sept. 2000), when her mind was still very much in a fog due to her sleep disorder, she called up one of her mutual fund companies and requested a check for $10,000 from a Roth IRA which she had converted in 1998. She didn't need the money, and certainly not from a recent Roth conversion.
I still have the check. It has not been cashed. The mutual fund company said they can't do anything because more than 60 days has passed.
Can I approach the IRS and ask for help? I told mom numerous times to leave the Roth alone for 5 years. Will they allow her to 'undo' the distribution? Did the distribution happen if the check never gets cashed? Will they at least not make her pay taxes and a penalty on the distribution?
I've read IRS Form 590 and I'm not exactly sure.
I originally asked TMFKaren, and she suggested I seek the advice of Foolish CPA's.
Thanks Fools!

P.S. Don't ignore snoring, excessive daytime sleepiness, and chronic poor sleep. Sleep disorders are real and they are treatable.
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