208Accountant
Level 3
07-01-2021
01:48 PM
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A client had two accounts with a brokerage firm. Disappointed with the account's performance, she took all of the money and invested the sum of both accounts into a traditional IRA with a new broker.
She received one 1099-R for $177,000 and one 1099-B for $16,000 in proceeds with a $1,000 capital loss.
What I am concerned about is the $16,000 proceeds that were deposited into the traditional IRA because of the fact that it would create an excess contribution, subject to the additional 6% excise tax.
Is there a way to indicate that the account was rolled over so as to avoid the excess contribution tax?
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