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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
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I received a buyout from FedEx and put it in an IRA. Now the

Customer Question

I received a buyout from FedEx and put it in an IRA. Now the IRS wants me to pay taxes on the distributions. This is double taxation. Correct?
JA: What state are you in? And have you consulted a local attorney?
Customer: TN No
JA: Has anything been officially filed? If so, what?
Customer: I am preparing documentation for the Tax Court
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 4 months ago.
Category: Tax
Expert:  Robin D. replied 4 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 4 months ago.

This buy out, it sounds like you completed a rollover of the FEDEX pension to the IRA. If you did that in a timely way (within 60 days) then you would not be taxed on the initial move to the IRA.
If you missed the time then you were taxed on the buy out. When did you do this change (year)?

Customer: replied 4 months ago.
The buyout was taxed by FedEx prior to putting that money in the IRA. It is NOT a rollover
Expert:  Robin D. replied 4 months ago.

FedEX withheld tax when they gave you the money and you put the remaining amount in an IRA?

Customer: replied 4 months ago.
That is correct
Expert:  Robin D. replied 4 months ago.

Within 60 days you of getting the money you put it in your IRA?

Customer: replied 4 months ago.
Expert:  Robin D. replied 4 months ago.

You did not make up the difference of the tax they withheld? In other words you did not add to the amount you put in the IRA for the tax they withheld?

Customer: replied 4 months ago.
I received a buyout that was taxed. I took that money and put it in an IRA.
Expert:  Robin D. replied 4 months ago.

Then you would have only been taxed on the amount they withheld because it was missing. It was a rollover just not a full rollover. In that year you would have only reported the tax amount as taxable and the tax withheld as a payment. Did you do that?

Expert:  Robin D. replied 4 months ago.

What year did you get the buyout and rollover to the IRA? You have not told me that yet.

Customer: replied 4 months ago.
It is NOT a rollover 2013
Customer: replied 4 months ago.
It was a lump sum of wages that I paid taxes on and put into an IRA