Last December, I posed the following question:
Someone I know has an IRA with a CD maturing on Saturday, Dec 30 (sic).
> The bank says unless we withdraw the money before maturity, it will report
> the withdrawal due to maturity in 2007.
>
> We can work around this, so it isn't a major issue for us, but I'm still
> curious whether this is correct.
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A response pointed out that banks normally record a transaction as of the next business day, i.e. Jan 2, 2007 (which turned out to be Jan 3, because of Gerry Ford's funeral).It seems that regardless of how banks choose to deal with transactions, they can't override the IRS. And indeed, having just gotten a look at the 1099-R (don't ask), for tax purposes the withdrawal was allocated to 2006.
We dealt with the ambiguity by doing a 60 day rollover. But that still left a question of how much of a distribution to report on the 2006 tax return (even though the rollover made it nontaxable).
Mark Freeland snipped-for-privacy@sbcglobal.net