Question
Allen (age 32) takes a distribution of $20,000 from his traditional IRA account which he plans to deposit into an IRA with a different bank.
Allen (age 32) takes a distribution of $20,000 from his traditional IRA account which he plans to deposit into an IRA with a different bank. During the 60-day rollover period, he gambles and loses the entire IRA balance. What income and/or penalties must he show on his tax return related to the failed rollover? Income: $________ Penalty: $_______
Telly, age 38, has a $145,400 IRA with Blue Mutual Fund. He has read good things about the management of Green Mutual Fund, so he opens a Green Fund IRA. Telly asked for and received his balance from the Blue Fund on May 1, 2018. Telly opted to have no withholding on the distribution.
a. What is the total amount Telly will receive from the Blue Fund IRA? $________
b. What amount must Telly contribute to the Green Fund IRA to avoid having taxable income and penalties for early withdrawal? $_________
d. What amount will Telly initially receive if the distribution were from his employer's qualified retirement plan? $___________
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