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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15731
Experience:  15years with H & R Block. Divisional leader, Instructor
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I was over 60.5 when I pulled 40K from my IRA to pay my

Customer Question

I was over 60.5 when I pulled 40K from my IRA to pay my divorce lawyer (he gave me a 20K discount id I paid all at once). my ex defied the court, and refused to pay me until we were one day from suing her for contempt of a court order in court. The funds were removed on 3/29/2016, and I deposited 50K -commission (actual$49,930.94) on 7/26/2016. Would I be advised to ask the IRS for a special exemption so I do not have to take the 40K as income (since it went to pay the lawyer), and am I in violation of the law by depositing the $50K which is in excess of the allowed annual contribution plus catch-up? Please indicate if you need more information.
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: Which accountant?
Submitted: 6 months ago.
Category: Tax
Expert:  Robin D. replied 6 months ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 6 months ago.

You are in violation of excess contributions if the $50k has been deposited.

You have 60 days to complete a rollover. There are exceptions but that is when the institution does not complete the task or messes up in some way. The distribution was for a legal fee that is not deductible.

You can ask but I do not see where the IRS would allow the extended time.