Amen to this. It is my recollection that there is no tax penalty as
long as your hands never touch cash but I am hazy on the details and
this is where my speech rate speeds upandImentionthat

Iamnolongeralicensedfinancialprofessional and
pastperformanceisnoguaranteeoffutureresults and
consultyourtaxprofessional

Dana

On Apr 1, 2005 12:06 PM, Cameron Childress <[EMAIL PROTECTED]> wrote:
> 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?
> >
> 
> 

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