So, my husband's company went belly up and he had a small retirement plan with them. Since they're belly up - he had to roll over his retirement plan into an IRA or something. So, he went to the credit union and talked to them and they took the paperwork to send to the investment company.
Lo and behold, we get a check for Aaron's retirement - as a cash out - not as a rollover. With all the federal taxes taken out, of course. The investment firm says they never got the paperwork. Sooo, the question is - how would you handle it? The investment firm says they can't "un-do" the cash out, but if he puts it back in an IRA he'll get a "credit" on 2005 taxes. My coworker says that if he doesn't put it back in an IRA, he'll get an additional 10% penalty taken out. I say he's sort of screwed in that even if he gets a credit, it's on the remaining money and the tax that's already been taken out is gone for good. (IE the credit I doubt will equal the tax removed.) But, I don't really know much about this stuff. The best case scenario would be to someone get the credit union to either prove that they sent the paperwork or prove that they fucked up and make them work with the investment firm to "un-do" the cash out. But, the chances of that happening are slim. So - you investment/tax experts. What's the scoop? Will there be an additional 10% penalty? I'm sure the state will want its cut of taxes, since only fed taxes were removed. How big will the "credit" be? Thoughts? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Find out how CFTicket can increase your company's customer support efficiency by 100% http://www.houseoffusion.com/banners/view.cfm?bannerid=49 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:152503 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
