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Weird Roth/IRS Question
Old 08-03-2006, 09:20 PM   #1
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Weird Roth/IRS Question

About 4 years ago, I cashed out of a Roth IRA account I had at Dean Witter. What I withdrew equaled my total contributions. I filed my taxes that year and didn't report the withdrawl because I was under the impression I could withdraw my portion of contributions without penality or paying taxes. Two years later I get a nasty gram from the IRS stating that I owe taxes (Dean Witter apparently sent a 1099 something) on the total amount. Instead of spending the time researching this issue, I paid the bill to get them off mu back.

I've been really bothered since that time, since I may have paid a bill to the IRS for monies that rightly belonged to me. Afterall, I already paid income taxes on my contributions to the Roth IRA.

My question is, can I go back and provide supporting documentation to make a claim to the IRS to refund my money? I think I may need to file an amended return as well. Any thoughts? Or has anyone been successful in recovering monies owed to them after a long period of time?

Thanks.
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Re: Weird Roth/IRS Question
Old 08-03-2006, 09:58 PM   #2
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Re: Weird Roth/IRS Question

Quote:
Originally Posted by cube_rat
About 4 years ago, I cashed out of a Roth IRA account I had at Dean Witter.* What I withdrew equaled my total contributions.* I filed my taxes that year and didn't report the withdrawl because I was under the impression I could withdraw my portion of contributions without penality or paying taxes.* Two years later I get a nasty gram from the IRS stating that I owe taxes (Dean Witter apparently sent a 1099 something) on the total amount.* Instead of spending the time researching this issue, I paid the bill to get them off mu back.*

I've been really bothered since that time, since I may have paid a bill to the IRS for monies that rightly belonged to me.* Afterall, I already paid income taxes on my contributions to the Roth IRA.*

My question is, can I go back and provide supporting documentation to make a claim to the IRS to refund my money? I think I may need to file an amended return as well.* Any thoughts?* Or has anyone been successful in recovering monies owed to them after a long period of time?
You been really bothered for 4 years without doing anything until now!* Wow!* If this pertains to 2002 or prior, you are out of luck.* For 2003 going forward, you may file an amended return and get your money back.
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Re: Weird Roth/IRS Question
Old 08-03-2006, 10:00 PM   #3
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Re: Weird Roth/IRS Question

Yes, really bothered I've been in slight whirlwind the last 4 years with a new marriage, buying houses, and my career.

Thanks for the info!
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Re: Weird Roth/IRS Question
Old 08-03-2006, 10:15 PM   #4
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Re: Weird Roth/IRS Question

Cube Rat,
I remember those whirlwind years -- personal finance stuff seems to slip to the back burner. I'll never forget how I failed to join our company's options pool in 1986 by missing a deadline because I was too busy doing company business-related things and taking my job seriously. Those were the options right after the IPO which really were worth something... Oh well, learned that lesson and looked after my own personal finance stuff more closely after that, so maybe it was a worthwhile investment.

Good luck with your amended return if there is still time.
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Re: Weird Roth/IRS Question
Old 08-03-2006, 11:39 PM   #5
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Re: Weird Roth/IRS Question

Cube rat,

I would do an amendment and try to get a refund.... I did takes about 100 years ago.. and from what I remember, you have three years from the date of the last submission...

So, it is true that for everything else on that tax return you can not do anything as it is to late, but you and the IRS made a change on one item two years ago... so, do it fast... or you will lose this also..

The final thing you can also try... and this is in the future.. when you withdrawl funds in the future, use your payments you made into it that you 'think' you withdrew then.. ie, save taxes on this amount as right now you have not withdrawn the funds for tax purposes...
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