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mkos
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put money in wrong IRA, took money out and oput it in the right one post #1  quote:



In the beginning of 2003, my mom went to some tax planning seminar, and they told her she could still put money into an IRA for 2002. My mom went to her brokerage and told them to put $3500 into her IRA.

The put $3500 into her traditional IRA, but my mom makes too much money to contribute to her trad. IRA. We called her brokerage and had them take the money out of the traditional and put it into her Roth IRA.

The 2002 1099-int never displayed the transaction with the traditional IRA, and we never deducted anythign for it becuase the money did not stay in thew account.

On the 2003 for 1099-INT, they are now claiming we withdrew $3500 from the traditional IRA.

Are we supposed to pay taxes on this money? After all, we never deducted it before? Also, do I have toi worry about her 10% penalty?
Is there an IRS form I can use to disclose this situation?


Old Post 02-29-2004 01:04 AM
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mkos
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Death of a spouce post #2  quote:

ohh yeah, I appreciate any help you can provide

Last edited by mkos on 02-29-2004 at 01:23 AM |
Old Post 02-29-2004 01:07 AM
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Ken NJ
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post #3  quote:

Your case is very fact specific and requires someone to review entire situation to unravel the problem. Your reliance on prior non-deduction is only part of the many items to consider. Either mom made mistake in execution and/or sue the earlier advisor for wrong advice. From that continued a succession of errors that need to be corrected. Perhaps an explanation attachment to your 2003 Tax Forms along with the following form declaration. You need to see some experienced tax person to guide your. There are other facts missing.
Form 8606 Nondeductible IRA Conversion to Roth IRA < -- Just Click Here


Old Post 02-29-2004 01:54 AM
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mkos
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post #4  quote:

I actually called the IRS to find out specifically what to do. They were actually very helpful (They have an 800 number).

They told me what to do and what publication talked about it [Publication 590 p. 27]
and where i enter the info on my 1040 [15(a)&(b)]

I recommend calling to anyone with a specific question.


Old Post 03-01-2004 05:57 PM
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