On Feb 24, 4:40 pm, joetaxpayer <joetaxpa...[at]nospam.com> wrote:
- quote -

You also have to watch out that evidence of high income may terminate
certain income such as SSI and medicaid. It will be attributed to his
SS#.

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joetaxpayer wrote:
- quote -

I would start with the trustee(s), this seems like an issue for such as
them.

-Mark Bole

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I've been made aware of a situation, friend of a friend kind of thing, I
am not in direct contact with the individual.
A woman in her 60s died, and left her brother a sum of money in an
annuity, held within a trust. The annuity was a rollover from the
deceased's 401(k).
The brother, who is disabled, and has not filed any tax return for
decades, panicked, and withdrew the money about 4 months ago. He's now
aware that this money is taxed as ordinary income and his tax bill will
be near $40K. Had he left it in the annuity, he should have been able to
withdraw $9000 or so each year and pay no tax at all.

The question - does anyone here have experience requesting a waiver of
the 60 day rollover rule? He should have been able to roll the money to
a beneficiary IRA, but was completely ignorant of any tax laws, and did
not know this. Is the IRS ever merciful in such circumstances?

JOE

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >