Life_is_Good
Recycles dryer sheets
- Joined
- Mar 1, 2007
- Messages
- 236
So... I received a few of these “Fair Fund” checks as repayment for some market timing shenanigans that may (or may not) have occurred years ago while I owned several mutual funds. While no guilt has been admitted by the MF company, they and the SEC agreed to send me a couple bones anyway - just in case I was negatively affected.
I imagine most of these checks are simply reinvested into the original account - based on the “payee” on the checks. In my case, it’s from my Roth IRA.
Well... I’m now fully retired and I do not earn income. I am unable to contribute to my Roth IRA. A year ago, I made a mistake and sent one of these Fair Fund checks to be deposited back into my Roth IRA. I figured the $10 reimbursement was originally from my Roth IRA so that’s where the check should be deposited. I was wrong. Uncle Sam classified it as an excess contribution and I had to reverse it out and pay a crappy penalty.
This year... I received another Fair Fund check for about $13. It’s made payable to:
IRA FBO (my name)
or successor trustee or custodian
Pershing as custodian
Roth Account
(my address)
I know I can’t put it back into my Roth IRA. If I could get my bank to cash it for me, would that somehow trigger Uncle Sam to slap me with another penalty?
Anyone else (with no earned income) receiving these types of checks? If so, how do you negotiate them?
I imagine most of these checks are simply reinvested into the original account - based on the “payee” on the checks. In my case, it’s from my Roth IRA.
Well... I’m now fully retired and I do not earn income. I am unable to contribute to my Roth IRA. A year ago, I made a mistake and sent one of these Fair Fund checks to be deposited back into my Roth IRA. I figured the $10 reimbursement was originally from my Roth IRA so that’s where the check should be deposited. I was wrong. Uncle Sam classified it as an excess contribution and I had to reverse it out and pay a crappy penalty.
This year... I received another Fair Fund check for about $13. It’s made payable to:
IRA FBO (my name)
or successor trustee or custodian
Pershing as custodian
Roth Account
(my address)
I know I can’t put it back into my Roth IRA. If I could get my bank to cash it for me, would that somehow trigger Uncle Sam to slap me with another penalty?
Anyone else (with no earned income) receiving these types of checks? If so, how do you negotiate them?