How to handle a ROTH distrbution check?

Apr 26, 2007 5 Replies
N

I have a ROTH IRA for over 7 years and I am over 60. In 2007 I received a "distribution payment" from a fund as a result of an SEC action against the fund. The SEC said I was an "injured" investor because of market timing carried on by the fund. I will probably deposit the check into th ROTH IRA and I'm sure this is not a taxable event. However, what do I need to do in regard to filling out my



2007 tax forms? If the fund issues a 1099-R, then I'll just report that on my income tax. What if they don't issue a
1099-R? Do I not report it?

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P

Assuming the fund was held in your IRA the check should have been made payable to the IRA. Return it and get a corrected one.

-- Phil Marti Clarksburg, MD

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B

sounds more like you received a payment from the fund mgmt co not a distribution from your roth (hope you got more than $10)

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-----> real address on hobokeni or hobokenx

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N

The fund was held in my Roth IRA account and the check says the name of the IRA account which is: John Doe Charles Schwab & Co Inc Cust Roth Conversion IRA

Even though my name is on the top line of the check, I believe that it is in fact "made payable to the IRA". Would you agree?

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N

Yes, that is correct.

(It is $160).

The details of the reason for the payment are covered at

formatting link

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P

Yes. It's jointly payable. Endorse it and send it along to Schwab for deposit. It doesn't count as a contribution.

-- Phil Marti Clarksburg, MD

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