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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13343
Experience:  15years with H & R Block. Divisional leader, Instructor
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I had a 401k payout from my previous job of a little over

Customer Question

Hello. I had a 401k payout from my previous job of a little over 30,000. I had it sitting in a CD for a long time, and pulled it out into a savings account, hopping to role it over into my new jobs 401k. Well there was some hicup where the bank said I wouldn't be able to do that for some reason. So a little more time went by and I decided to put it in an IRA or ROTH IRA instead.
The problem is I pulled that money out of the CD into a savings account on Dec. 10th 2015. Am I going to get hit with a huge penalty for taxes, or is that going to put me in a higher income tax bracket this year (I make 40k a year - would that put me up to 70k?)
I'm trying to figure out if I can put it in an IRA or Roth IRA right now and avoid any kind of tax hit or penalty. Someone told me that once it's in savings for two months you are liable for penalties and or tax increase at the end of the year.
Submitted: 8 months ago.
Category: Tax
Expert:  Robin D. replied 8 months ago.

Hello

You had 60 days to rollover a retirement account into another tax deferred account.

You have missed that time.

The $30,000 is taxable to you and does add to your income for 2015. You should have been sent a 1099R that shows the $30,000.

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