Hello. I screwed up bigtime...
Earlier this year, I took an early distribution
with penalty (long story) from brokerage A Traditional IRA
account. I asked for $60k minus estimated tax withholding
(+ 10% penalty. Needed it and hardship did not qualify for exemption from penalty). Good so far.
When doing this, however, I had the balance rolled over into brokerage B... Amt in excess of $100k.
2 checks arrived, but I thought the 2nd check was simply a payment notice to Brokerage B. not so. Rather -- it's an uncashed check that has been sitting on my desk for 5 months!!!
Brokerage A is unable to undo this since a 1099 has already been cut and it has been over 60 days. During this time I was under extreme duress and not taking care of business as needed.
I'm sending this check to Brokerage B today, but now how do I avoid taxes? Technically I suppose I owe for 2012 taxes because of this, but I reported that I'd rolled over the distro because I thought I had electronically.
What are my options?