I would: 1) Not deposit/cash that check until you... 2) Talk to an investment advisor outside of your Credit Union.
This is a sticky situation, and one that I for one am not willing to touch. If you are not sure who to trust, ask your CPA if they can recommend someone, there are certainly exceptions, but IMHO a Credit Union usually isn't going to be the very best place to get investment advice. -Cameron -- Cameron Childress Sumo Consulting Inc http://www.sumoc.com --- cell: 678.637.5072 aim: cameroncf email: [EMAIL PROTECTED] On Apr 1, 2005 6:33 AM, Deanna Schneider <[EMAIL PROTECTED]> wrote: > 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:5:152546 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
