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Posted by Drew Edmundson on November 28, 2006, 9:03 pm
Please log in for more thread options righttb@msn.com wrote:
> Ouch! I had 50K shares of a restricted (but legend has been
> lifted) stock in a Merrill IRA. I tried to transfer the
> shares to a different IRA with a different vendor. I then
> closed/canceled the Merrill account because there was
> nothing left there. Unfortunately, the "new" IRA vendor did
> not accept resctricted shares and they sent them back to
> Merrill a few days later. Merrill then sent me a
> certificate (at least I assume it was Merrill...someone did)
> for the 50K shares which was
> misunderstood/misplaced/whatever. This was all done in late
> April 2006.
>
> Unfortunately, I've only today (November 2006) figured out
> what the hell transpired and unbeknownst to me i've taken a
> distribution from the IRA! I "found" the stock cert today.
> I obviuosly have not used the proceeds from the so-called
> distribution, and i most certainly did not intend to take
> one. It is my responsiblity in the end (should have paid
> more attention to what was happening with my accounts) but I
> was not clued in to what was happening all that clearly
> either.
>
> I stopped listening to all the bad news from my tax man part
> way through his speech and poked around a bit on the
> Internet. There is a "non-automatic waiver application" to
> have the IRS consider waiving the 60-day rule via a "private
> letter ruling:". My question is whether ANYONE has ANY
> experience with this mechanism such that I can determine
> either that I shouldn't bother with the process or whether
> it's worth giving it a try. Very easy to show that I have
> not profited by the unintended distribution. Not a cheat,
> just too busy, a dumbass, whatever.
Take a look at the published private letter rulings and see
how your circumstances compare. Try Legalbitstream for the
PLRs:
http://www.legalbitstream.com/
The actual Code section for the waiver of the 60 day rule is
408(d)(3)(I).
---
Drew Edmundson, CPA
Cary, NC
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