joetaxpayer <joetaxpayer[at]nospam.com> writes:

- quote -

There's *no* mandatory tax withholding on IRA distributions.

You're confusing IRAs with 401(k)s in this regard.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Key Bored wrote:

- quote -

The rules of the bank [and terms of the CD] are seperate
from the 1 year rule regarding rollovers. You have to have
one year in between times that you 'touch' the money. As you
said, the direct transfers between custodians are unlimited
and without issue. So if you plan to take the money into
your posession, you need to wait till day 365 to withdraw
it.

But I believe when you do this they'll try to withhold the
20% mandatory tax withholding. Which you'll recover at tax
time, if you put the full sum into the next IRA. Which
prompts my question back to you - why not stick with a
direct transfer if you want to change banks, or move to a
broker where you can buy bank CDs as you wish? JOE

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Key Bored" <nobodyinparticular[at]eudoramail.com> wrote:

- quote -

It's irrelevant. What matters is the timing of the movement
from one IRA to another.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Moderator:
This submission was found in my "Burn-Before-Read" folder
which I now read because I now scan because of complaints
that submissions are not reaching me. I suspect it was
there because "nobody" in an e-mail address is sudden death.
As precedent means absolutely nothing to me, I suggegt all
users with munged e-mail addresses change "nobody" to
something else.

Regarding the IRA regulations from the IRS Publication 590,
rollovers must be at least one year apart, or the entire
amount is subject to tax. Trustee transfers can be done
anytime and are free from taxation. My question is, when a
IRA CD matures, does the grace period count toward calculating
the one-year interval?

For example, let's say you have an IRA CD maturing on a
specific date, but don't want to withdraw the money and do a
rollover because one year hasn't elapsed, only 360 days.
However, the bank allows 10 calendar days to either renew the
CD or close the account. If you wait until the end of the
grace period to withdraw the money, the elapsed time would be \370 days,
or more than one year.

Any thoughts?

Thanx,
Key Bored

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >