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Phillip B, EA
Phillip B, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 704
Experience:  Practicing since 2004. Expert in 1040, small business, represent vs. IRS, & int'l tax mattters.
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I took a payout from a qualified pension plan in 2012. My intenet

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I took a payout from a qualified pension plan in 2012. My intenet was to put it into a IRA. When I received the check they had already taken taxes out. I filed for an extension on my 2012 taxes and I have not cashed the check. It was my falt for misunderstanding the process.Can I still get this money into another IRA and not have to pay the high amount of tax?
Thanks for using! I will do my best to provide you with a clear and concise answer to your tax question based on the information you have provided.

When take a distribution in a cash from a qualified retirement plan, the plan is required to withhold 20% for taxes regardless of your intent to perform a rollover. In order for you to complete a qualified rollover, you will need to deposit the money in a IRA (or other qualified plan) within 60 days of the date the plan disbursed the funds from your pension plan to you. If you miss the 60 day deadline, you will be stuck with the distribution as taxable income.

If this is the case, you may want to consult with a local CPA or enrolled agent about options to lessen the tax hit.

If there are other questions or concerns, please reply to this answer so that I may assist you further. If this answers your question, please rate my performance between OK and Excellent so that I may receive credit for my work. Thanks for your business.
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