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I have a tax question concerning transfer of funds between…

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I have a tax...

I have a tax question concerning transfer of funds between self- directed roth IRAs and LLC accounts.Also transfer of funds between IRAs and former LLC accounts

Accountant's Assistant: What state are you in? It matters because laws vary by location.

WASh.

Accountant's Assistant: What steps have you taken so far?

I originally had a Roth IRA with A credit union. I transferred those funds into a self directed IRA with another custodian. Then I transferred money from my self directed IRA into a LLC account. Then I decided to send that money back to the IRS and then I dissolved the LLC. Now I want to transfer all the funds in that account to my financial advisor. He advised me to run it through a tax attourney. So, please heip.

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

I think I got most of it.

Submitted: 6 months ago.Category: Tax
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12/20/2017
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 6 months ago
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,607
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified

Welcome to JustAnswer!

My name is***** will be able to assist you.

I noticed your question has not yet been picked up, I will do my best to answer your question.

"Now I want to transfer all the funds in that account to my financial advisor."

What is your specific question regarding the transfer to your advisor?

___

I do want to ensure you are aware of the IRA transfer rules laid out by the IRS.

"Beginning in 2015, you can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own (Announcement 2014-15 and Announcement 2014-32)."

____

Tax consequences of the one-rollover-per-year limit

Beginning in 2015, if you receive a distribution from an IRA of previously untaxed amounts:

  • you must include the amounts in gross income if you made an IRA-to-IRA rollover in the preceding 12 months (unless the transition rule above applies), and
  • you may be subject to the 10% early withdrawal tax on the amounts you include in gross income.

Additionally, if you pay the distributed amounts into another (or the same) IRA, the amounts may be:

____

Direct transfers of IRA money are not limited

This change won’t affect your ability to transfer funds from one IRA trustee directly to another, because this type of transfer isn’t a rollover (Revenue Ruling 78-406, 1978-2 C.B. 157). The one-rollover-per-year rule of Internal Revenue Code Section 408(d)(3)(B) applies only to rollovers.

____

Please let me know your specific question or if I was able to provide you with enough information above.

Thank you!

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Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 6 months ago

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Chad CFP ® professional

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