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Discussion in 'After Hours Lounge (Off Topic)' started by ToddJ, Apr 8, 2005.
Is anyone here an account? I have a question about my taxes and contributions to IRAs...
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.
The answer is yes
The answer is no...
The REAL answer is....it depends
Are you using Turbotax?
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....
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.
Yeah...i did it within 60 days...
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.
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.
Incorrect. It is a part of the original rollover.
A rollover is not a contribution.