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I inadvertently took a distribution from my SOLO 401 K last…

I inadvertently took a...

I inadvertently took a distribution from my SOLO 401 K last year. I took the money from the wrong account. Can I put it back or do I need to declare it as a withdrawal??? Withdrew it Oct 2017.

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Can I redeposit the amount I inadvertantly took out or must I declare it as income for 2017??

Accountant's Assistant: Is there anything else the Accountant should be aware of?

I am over 65

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Answered in 1 minute by:
3/8/2018
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,609
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
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Hello!

My name is***** will assist you today.

One moment while I type my initial response.

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You have 60 days from the day your distribute the funds to roll the funds over.

When you do not roll over the funds in 60 days, then you do have to claim the funds as income.

Generally, the retirement account will ask you to sign additional paperwork before you are able to distribute the funds to yourself.

I am sorry if you expected different.

Please let me know if this has answered your question or if you have any additional questions.

When you have no further questions a positive rating of 5 stars is much appreciated.

Thank you!

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Customer reply replied 4 months ago
since it has been over 60 days (even though was done as an error) will still have to claim as income distribution from 401k Solo.

Once the distribution goes over 60 days you must include the distribution as income.

There is not exception, not even self imposed honest errors.

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Customer reply replied 4 months ago
Do not want to switch to a live phone call. Just verifying that I can't just put back the funds I accidentally took out of my solo 401K October 2017.

The call offer comes up automatically. In this case I don't believe you need a call, but I am available to speak if you would like

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The IRS is unforgiving of distributions that go past 60 days. Accidents do happen, but an accident is not acceptable in this case.

Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,609
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified
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