Well, it's my fault for not acting quicker, so I could look at all my
options, Thanks for the info.
Lisa

- quote -

Would not apply in this case since she has no right to make deposits into the
account.

If the pre-tax retirement account were some other account than an IRA, the
situation is irreversible.

- quote -

Unless it were a employer's account, there is no required withholding.

- quote -

No is probably required to file a qurterly report of make her final 2004 filing
before the required date for 4th Qtr. deposits.

Yes, you made a mistake. The 60 day reinvestment rule cannot be used on
benficiaries who are not the former spouse of the diceased, so you're
stuck with paying taxes. Any such roll over has to trustee to trustee
for inherited accounts. See IRS Publication 590 for a full explanation.

In article <4upDd.878$eb.761[at]trndny01> ,
Lisa <ocampolm[at]no-yahoo-spam.com> wrote:

- quote -

You need to talk with a skilled accountant. If the account
was given to you in a lawful manner following your Mother's
death, then it becomes your account, and there is no pressure
on you to do anything with it or cash it out. If someone gave
you bad advice that lead you to do this, then perhaps you can
go back at them for some type of compensation. In addition,
you sometimes have 60 days to reinvest IRA funds. If that
applies in your case, you may be able to simply roll over
the money to a new IRA account, and avoid all of the taxes.
Since you have touched the check, you do have withholding,
so you may need to pay that part out of pocket or pay taxes
on it.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

Hello Everyone!

I just (12/31/2004) cashed out my deceased mother's pretax retirement
account. I had to do something, she died on 12/11/2003. So I panicked.
I believe that I made a mistake in doing this, because now, looking at
our taxes, we've (my husband & I) moved from the ~12% to ~28% tax
bracket. Is there any thing I can do now, that might lower this tax
bill. I have only invested $9500 last year into my 401K and $3000 into
my husbands traditional IRA.