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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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WE HAVE BEEN OVERPAID ON OUR IRA DISTRIBUTION - THE BANK SAYS

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WE HAVE BEEN OVERPAID ON OUR IRA DISTRIBUTION - THE BANK SAYS THEY CANNOT CORRECT THIS. i AM SAYING THAT THIS OVERPAYMENT COULD PUT US IN A DIFFERENT TAX BRACKET. IS THERE A REQUIREMENT THAT THE BANK MUST CORRECT AN OVERPAYMENT?
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LEV :

Hi and welcome to Just Answer!
If you requested distribution from IRA account - that amount is included into your taxable income.
You may however - put the distributed amount into different IRA account - that will be considered a rollover and will not be taxable - if the money are deposited into another IRA account within 60 days after distribution.
There is no requirements for the bank to correct overpayment - however if overpayment occurred not because of your request but because of bank's mistake - you may request compensation for damages resulted by that mistake. For instance - additional tax liability due to higher tax bracket would be clear your damages.

LEV :

If the bank refuses to compensate your damages - you may sue the bank as long as that is bank's fault..

Customer:

Thank you for your answer. I will continue to talk with the bank. I am satisfied with the $30.00 fee. In fact it has been a relief to get your input.

Customer:

Thank you for your answer. I will continue to talk with the bank. I am satisfied with the $30.00 fee -- in fact it has been a relief to talk with you.

LEV :

You are very welcome.
Please update me with outcome.

Lev and 4 other Tax Specialists are ready to help you
Yes - I understand that distribution might advised by the bank.
However - you are an IRA owner is responsible for any tax liability resulted from such distribution.
As long as 60 days period is not over - you may put the money into another IRA account - and that will not be counted as your taxable income.