How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168, Accountant
Category: Finance
Satisfied Customers: 3443
Experience:  Tax Accountant
58285678
Type Your Finance Question Here...
Tax.appeal.168 is online now
A new question is answered every 9 seconds

While taking the 2015 IRA dustribution online, the website

Customer Question

While taking the 2015 IRA dustribution online, the website was balky and by mistake the distribution was taken three times. How do we get the unwanted money back into the bank without penalty. We are in our 1980's and do not have earned income.
Submitted: 1 year ago.
Category: Finance
Expert:  Tax.appeal.168 replied 1 year ago.
Thank you for contacting us to assist you today. My name is ***** ***** my goal is to provide information to the best of my knowledge to assist you.
There is what is referred to as the 60-Day Rule. SEE BELOW:
The 60-day Rule
If you withdraw money from your IRA and redeposit the same amount within 60 days, it effectively doesn't count. You will not be charged a penalty for early withdrawal, and you do not need to pay taxes on the withdrawal. The reverse is also true -- you do not get a tax deduction for the re-deposit in a traditional IRA. The 60-day rule is applicable to both Roth and traditional IRAs.
Procedure
In most cases, you can redeposit your IRA withdrawal in the same way you make a contribution each year -- via check or direct deposit to your IRA provider. Since deposits and withdrawals do have tax consequences, it's best to check in with your IRA custodian and tell them what you're doing. This ensures that your end-of-year tax forms reflect your actual activity, not someone's best guess.
REFERENCE SOURCE:
http://budgeting.thenest.com/replace-ira-withdrawals-22593.html
Let me know if you require further assistance with this matter.
Customer: replied 1 year ago.
Many thanks, ***** ***** deposit the unwanted distributions right away, and do hope it works. Thank you
Expert:  Tax.appeal.168 replied 1 year ago.
Hello again,
As long as you redeposit within the 60 days, the unneeded distributed amount should not be taxed. My suggestion is this, as the transactions were 3 separate transactions, you want to write a check for the amount of the withdrawal for the additional 2 transactions, separate checks. Example, you initially wanted $5,500, the transaction happened 3 times, write 2 separate checks for $5,500 each. To be on the safe side, you may want to include a note indicating that the funds were withdrawn in error due to a website glitch.

Related Finance Questions