Hello Bogleheads,
I'm helping my MIL consolidate accounts after her husband passed away last year. One particular account was being transferred right around an ex-dividend date, and she received a physical check for the dividend that included backup withholding. The check is titled: "PERSHING LLC CUST FBO JANE DOE IRA" and has 24% of it deducted for federal taxes. All accounts were already put in her name before the transfer.
I wanted to clarify what I should have her do. I believe: (1) the check must be deposited into her Empower IRA as an indirect rollover, and (2) she can additionally deposit $1,510 (the amount of the withholding) as an indirect rollover into any traditional IRA in her name, either the Empower one, or her Fidelity IRA.
Does this sound correct?
I'm helping my MIL consolidate accounts after her husband passed away last year. One particular account was being transferred right around an ex-dividend date, and she received a physical check for the dividend that included backup withholding. The check is titled: "PERSHING LLC CUST FBO JANE DOE IRA" and has 24% of it deducted for federal taxes. All accounts were already put in her name before the transfer.
I wanted to clarify what I should have her do. I believe: (1) the check must be deposited into her Empower IRA as an indirect rollover, and (2) she can additionally deposit $1,510 (the amount of the withholding) as an indirect rollover into any traditional IRA in her name, either the Empower one, or her Fidelity IRA.
Does this sound correct?
Statistics: Posted by plutoblackhole — Thu Aug 08, 2024 8:29 am — Replies 4 — Views 162