- 1). Call the rollover IRA custodian at the number provided on the statement. Determine what problems may exist, including failure to rollover within 60 days, failure to rollover 100 percent of the initial money or failure to take out a required minimum distribution prior to the rollover. You will be able to determine these problems by talking to the representative and providing information from your check stub and previous account statement.
- 2). Call the IRS at 800-829-1040 to determine if you are eligible for an automatic waiver for not rolling over within 60 days. If the problem exists as a direct result of the account custodian's (financial services firm's) error, you are entitled to request a waiver. If you qualify, write a letter stating the exact details of the issue, including what accounts are involved, the amount rolled over and when, the taxes withheld and how the custodian was at fault. Provide any evidence of the problem.
- 3). Remove the required minimum distribution if it was not taken out prior to the rollover and you are over age 70 1/2. Do this as a removal of an excess contribution; obtain the proper form from the rollover IRA custodian. This needs to be done prior to the tax filing deadline for the year; otherwise, a 6 percent tax penalty is assessed each year on the excess. Record the distribution as a gross distribution on Line 15, Form 1040 when filing taxes.
- 4). Add the amount withheld from the original retirement account within 60 days of getting the check. When performing an indirect rollover, money is sent to you via check with 20 percent automatically withheld for federal taxes. Failure to add this amount back to the rollover IRA value within 60 days results in a distribution of the 20 percent with taxes and penalties applied.
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