I need tax help....

Discussion in 'After Hours Lounge (Off Topic)' started by ToddJ, Apr 8, 2005.

  1. ToddJ

    ToddJ Second Unit

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    Is anyone here an account? I have a question about my taxes and contributions to IRAs...
     
  2. Cameron Yee

    Cameron Yee Executive Producer
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    Go ahead and ask the question. I'm not aware of any accountants here, but I know there are plenty of knowledgeable people on investments, etc.
     
  3. Jim Sentry

    Jim Sentry Stunt Coordinator

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    The answer is yes
     
  4. Henry C

    Henry C Stunt Coordinator

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    The answer is no...
     
  5. Mort Corey

    Mort Corey Supporting Actor

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    The REAL answer is....it depends
     
  6. Steve Tannehill

    Steve Tannehill Ambassador

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    Are you using Turbotax?

    - Steve
     
  7. ToddJ

    ToddJ Second Unit

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    Awhile back I was laid off my job (Planet Hollywood I worked at closed) and I had a 401k plan. Since I am a big procrastinator, I didn't roll it over right away into a new IRA. Eventually Merrill Lynch sent me a check for the money, minus the $649 for taxes. I then looked into getting a IRA from my local bank and he said that if put in $649 of my own money in at the same time, that I would get the money back when I did my taxes this year. So, I paid for it with a check from a 0% interest credit card and now I am doing my taxes. However, with the tax program that I am using (TaxAct), it asks if made any contributions to my IRA in 2004. I am thinking this would be considered to be a regular contribution, but I am not totally sure. And I don't have the money to contact a regular accountant. I just want to make sure I am doing it right so I don't get audited later on and find out I screwed up....
     
  8. Henry C

    Henry C Stunt Coordinator

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    I think it depends on how long it took for you to roll over the money into an IRA. I think you have 60 days to roll it into an IRA without incurring any taxes. So if that is the case, the $649 you paid with the check from your credit card would be considered a contribution for this year. Plus, you would get back the $649 that Merrill withheld from you on your tax return.
     
  9. ToddJ

    ToddJ Second Unit

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    Yeah...i did it within 60 days...
     
  10. Henry C

    Henry C Stunt Coordinator

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    yeah, so I believe that the $649 you paid will be considered a contribution for the year and you should get the $649 back when you file your taxes.
     
  11. Jim Sentry

    Jim Sentry Stunt Coordinator

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    Agree. you would have had 60 days to do a rollover. I would contact ML though and ask by what authority thay are refunding your 401K and witholding taxes when the 60 day period has not been reached.

    That, I believe is an error.
     
  12. Eric_L

    Eric_L Screenwriter

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  13. Jason L.

    Jason L. Second Unit

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    A rollover is not a contribution.
     

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