MJW EA & Company LLC

  • Home
  • About Us
  • Services
  • FAQ
  • Contact Us
  • Blog/News
  • Tax Packet
  • COVID-19 Related News and Updates
  • Email
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • Tax Preparation & Taxpayer Representation
  • Social Security & Retirement Planning
  • Our Small Business Community
  • Personal Finance
  • Fee Schedule
  • College & Beyond
  • Forms & Worksheets
  • Helpful Links
  • Healthcare and Taxes
  • Info for Non-Filers
  • Positions Available
You are here: Home / Social Security and Retirement Planning / The Rules and Regs on IRA Rollovers

April 30, 2015 Leave a Comment

The Rules and Regs on IRA Rollovers

Before making any decisions on how, when and in what manner to handle distributions and/or rolling over amounts related to your IRAs, we would like to offer our services in clarifying what can be done according to tax law versus what seems to be allowable in IRS publications or via an IRS representative on the phone.

Below are some excerpts from an article using an example relating to IRA scenarios and illustrates the open room for interpretation by the layperson when it comes to reading tax instructions.

“Let’s say I have five separate IRAs, each with $50,000. In January I take $45,000 from IRA-1. In March I take $45,000 from IRA-2, and use the funds to replace the IRA-1 distribution within 60 days. In May I do the same from IRA-3, July from IRA-4, and September from IRA-5. I timely replace the September distribution in November. I have now had use of $45,000 for as long as 300 days (5 separate 60-day periods).”

This is not what is intended by the 60-day rollover rule, but it is what could be construed by the language in the IRS writings. The problem is an IRS publication and/or a proposed regulation is not an “official” writing. They cannot be relied upon by taxpayers if a conflict arises.

“The Tax Court said that the 60-day rule could be used only once for all of the taxpayer’s IRA and a penalty will be assessed for actions such as these. The Tax Court clarified…that reliance on an IRS publication will not avoid penalties.”

Bottom line: Plain language can be imprecise from a legal perspective. Let us review the Tax Law and give you the best option for your needs.

mjw-75-iconsBC

Filed Under: Social Security and Retirement Planning Tagged With: IRA, rollover, rules, tax law

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

  • Name Change
  • Child Tax Credit
  • Second Quarter Estimated Taxes
  • Mid-Season Tax Check-In
  • American Rescue Plan Act
  • We may have moved but fret not – We’re Still Us!

COVID-19 Related News and Updates

Check here for the most recent updates we have gathered regarding the impact of COVID-19 and taxes, personal finance and planning.

We are also going to be providing – and updating – links to get you the most up-to-date information on changes.

 

Regarding the PPP (Paycheck Protection Program), please note: 

Because we are not “authorized agents” for purposes of completing loan applications, we are not able to complete the actual loan applications for our clients. At this point, there is limited and unclear guidance available for the loan process. We will do our best to provide information and/or documentation requested by the lenders that we have access to as your bookkeepers/accountants and/or tax preparers, but we are unable to assist with the actual loan application or loan amount requests. There are severe penalties for misrepresentation. These documents must be signed under penalty of perjury and we take that responsibility very seriously.

MJW EA & Company LLC icon

Get My Payment (Economic Impact Payment) status checking tool:  https://www.irs.gov/coronavirus/get-my-payment

Senator Chris Murphy’s Page:  https://www.murphy.senate.gov/coronavirus

From the IRS, those who would have had to take an RMD have been given relief for 2020.  Official policy can be found here:  https://www.irs.gov/pub/irs-drop/n-20-06.pdf

For those with student loans, check out this site for FAQs on relief in 2020:  https://studentaid.gov/announcements-events/coronavirus and https://patch.com/connecticut/across-ct/ct-coronavirus-payment-relief-student-loan-borrowers-lamont

SBA Loan Info:  https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

CT Department of Labor

CT DMV is extending license renewals:  https://portal.ct.gov/DMV/Easy-Answers/Easy-Answers-Webpages/How-to-Renew-Your-Drivers-License

IRS FAQs on the stimulus payments:  https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know

Employee Retention Credit:  https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act

CT Program for minority and female-owned businesses (It’s a 0% line of credit with forgiveness if used for certain types of expenses within 3 months):  https://www.hedcoinc.com/state-of-ct-hedco-decd-covid-19

The IRS has suspended their collections process during COVID-19.  Click here to read the updates:  https://www.taxprotoday.com/news/irs-hits-the-brakes-on-collections-in-response-to-the-coronavirus

 

JOIN OUR NEWSLETTER

How to find us

https://maryjowalker.com/wp-content/uploads/2020/12/Our-new-location.mp4
   
"Your referrals are much more than business to me, they're the highest compliment I can ever receive!"
 

Updating Client Contact Information

203.245.6175

We look forward to working with you!

Hours of Operation:

Monday through Friday: 8.30a-4p.

We are located at 869 Boston Post Road, Madison, CT 06443.

~ Flag Series by Photographer Jeff Allen Nantucket, MA

 

Name Change

We have just finished with the 2020 tax season! We are thrilled that we made it intact! It was a brutal one; but for the most part all of us – taxpayers included – came out unscathed in the world of taxation. Now we plan for the next tax season. After almost two years of […]

  • Child Tax Credit
  • Second Quarter Estimated Taxes
  • Mid-Season Tax Check-In

Recent Posts

  • Name Change
  • Child Tax Credit
  • Second Quarter Estimated Taxes
  • Mid-Season Tax Check-In
  • American Rescue Plan Act
  • Home
  • About Us
  • Services
  • FAQ
  • Contact Us
  • Blog/News
  • Tax Packet
  • COVID-19 Related News and Updates

Copyright © 2022 • MJW EA • Disclaimer • Privacy Policy • Site by C & D Studios