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Subject Author Date
How to handle a ROTH distrbution check? njoracle 04-26-2007
Posted by njoracle on April 26, 2007, 2:11 am
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 I have a ROTH IRA for over 7 years and I am over 60. In 2007
I received a "distribution payment" from a fund as a result
of an SEC action against the fund. The SEC said I was an
"injured" investor because of market timing carried on by
the fund. I will probably deposit the check into th ROTH IRA
and I'm sure this is not a taxable event.

However, what do I need to do in regard to filling out my
2007 tax forms? If the fund issues a 1099-R, then I'll just
report that on my income tax. What if they don't issue a
1099-R? Do I not report it?

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Posted by Phil Marti on April 28, 2007, 4:25 pm
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> I have a ROTH IRA for over 7 years and I am over 60. In 2007
> I received a "distribution payment" from a fund as a result
> of an SEC action against the fund. The SEC said I was an
> "injured" investor because of market timing carried on by
> the fund. I will probably deposit the check into th ROTH IRA
> and I'm sure this is not a taxable event.

Assuming the fund was held in your IRA the check should have
been made payable to the IRA. Return it and get a corrected
one.

--
Phil Marti
Clarksburg, MD

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by njoracle on April 30, 2007, 11:22 am
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Phil Marti wrote:

>> I have a ROTH IRA for over 7 years and I am over 60. In 2007
>> I received a "distribution payment" from a fund as a result
>> of an SEC action against the fund. The SEC said I was an
>> "injured" investor because of market timing carried on by
>> the fund. I will probably deposit the check into th ROTH IRA
>> and I'm sure this is not a taxable event.

> Assuming the fund was held in your IRA the check should have
> been made payable to the IRA. Return it and get a corrected
> one.

The fund was held in my Roth IRA account and the check says
the name of the IRA account which is:

John Doe
Charles Schwab & Co Inc Cust
Roth Conversion IRA

Even though my name is on the top line of the check, I
believe that it is in fact "made payable to the IRA". Would
you agree?

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Phil Marti on May 1, 2007, 7:12 pm
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>> Assuming the fund was held in your IRA the check should have
>> been made payable to the IRA. Return it and get a corrected
>> one.

> The fund was held in my Roth IRA account and the check says
> the name of the IRA account which is:
>
> John Doe
> Charles Schwab & Co Inc Cust
> Roth Conversion IRA
>
> Even though my name is on the top line of the check, I
> believe that it is in fact "made payable to the IRA". Would
> you agree?

Yes. It's jointly payable. Endorse it and send it along to
Schwab for deposit. It doesn't count as a contribution.

--
Phil Marti
Clarksburg, MD

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Benjamin Yazersky CPA on April 28, 2007, 4:44 pm
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> I have a ROTH IRA for over 7 years and I am over 60. In 2007
> I received a "distribution payment" from a fund as a result
> of an SEC action against the fund. The SEC said I was an
> "injured" investor because of market timing carried on by
> the fund. I will probably deposit the check into th ROTH IRA
> and I'm sure this is not a taxable event.
>
> However, what do I need to do in regard to filling out my
> 2007 tax forms? If the fund issues a 1099-R, then I'll just
> report that on my income tax. What if they don't issue a
> 1099-R? Do I not report it?

sounds more like you received a payment from the fund mgmt
co not a distribution from your roth

(hope you got more than $10)

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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