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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 15313
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Hi, I have Retirement Time Account with Wells Fargo which was

Resolved Question:

Hi, I have Retirement Time Account with Wells Fargo which was opened around 2000. I opened the account by writing a check and did not take any tax deduction, now that I am over 70 funds MUST be withdrawn. My problem is that Wells Fargo has no records on the initial deposit in that account since it was so many years ago. And I do not want to pay taxes on the principal as well. How do I avoid paying taxes on the principal?
Submitted: 1 year ago.
Category: Tax
Expert:  Megan C replied 1 year ago.

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

Wells Fargo may tell you that they do not have a record of your deposit, which might be true if you are going to a branch or calling into the 1-800 number, but they will have a record in their retirement account department

MyVirtualCPA :

When they send you your 1099 at the end of the year showing your withdrawals, it will tell you what portion of it is taxable vs nontaxable

Customer:

Yes, they sent me a 1099 and they said that everything withdrawn last year was taxable which is not true.

MyVirtualCPA :

Do you have records of your initial deposit?

Customer:

Do I have record? No! The check was written on my Chase bank account and they said they only keep records for seven years.

MyVirtualCPA :

Unfortunately without records from Wells Fargo or records that you have maintained, you will have to go by what is on the 1099.

MyVirtualCPA :

Do you possibly have your bank statements saved somewhere?

Customer:

It is possible that I have records somewhere in some old box! It was a large check and it would be reasonable for me to have kept it. But one does not always do what is the best thing.

MyVirtualCPA :

I know, one wouldn't think they would need their records for more than 7 years

MyVirtualCPA :

Do you remember that year when you filed your tax return if you filed form 8606 with the IRS?

Customer:

So what do I do now? I very much appreciate your kindness and your advice but I have not actually learned anything I did not know already (smile).

MyVirtualCPA :

Unfortunately, you will have to pay the tax on the withdrawal, unless you can otherwise prove you made the contribution.

Customer:

I do remember that I did not file any form 8606. Wells Fargo might have a record of when the account was opened.

MyVirtualCPA :

They really should

MyVirtualCPA :

They should be the ones helping you get this resolved, because it's their responsibility to keep track of this - not yours

Customer:

Thanks for this.

MyVirtualCPA :

You're welcome. I'm sorry I don't have a magic bullet

Customer:

OK, wishful thinking on my part!

MyVirtualCPA :

I understand

Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 15313
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 3 other Tax Specialists are ready to help you
Expert:  Megan C replied 1 year ago.
Thank you for your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, or social security needs. It was a pleasure working with you today.
Customer: replied 1 year ago.

Many thanks!

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