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Dividend From an Old IRA

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ByBergschrund

L1: Dividend From an Old IRAI just received a check in themail for $179. It is a payment for a lawsuit settlement brought against a mutual fund. I held this fund in a SEP IRA some 10 years ago. Since then that SEPIRA has been rolled over and combined with a different IRA and then split in half during a divorce. 3 years ago I began taking yearly withdrawals via 72t.My question – what to dowith that check. I don’t think I can deposit it to the IRA without breaking the 72t rules. I don’t really want to open another IRA just for that check. Can I simply cash it and pay the taxes plus 10% penalty on the $179 without breaking my 72t? Should I just tear it up?Thanks.2009-12-28 01:12, By: Bergschrund, IP: [71.202.213.110]
L2: Dividend From an Old IRASomeone else may have a better answer, but there was a similiar question asked back in 2003 that can be found by clicking HERE. Unfortunately, there still isn’t a really good answer, but I wouldn’t add it to the SEPP.2009-12-28 11:58, By: Gfw, IP: [216.80.125.206]

L2: Dividend From an Old IRAI bet I know where the check came from because I just got one too, but my fund wasn’t in an IRA so I don’t have any issues with cashing it – I called them to make sure.Solution – Open a new IRA account number and put the check into it, I know Fidelity will allow you to open an IRA with no minimum amount because I’ve asked them.2009-12-28 16:06, By: mikex, IP: [71.90.170.17]

L3: Dividend From an Old IRACashing the check may not even be an option since most of these settlement checks are made out to the “(custodian IRA FBO IRA owner)”, if the claim originated from an IRA holding.In that case, if you want to complete the non reported transfer to an IRA, most brokers will have you endorse the check “for deposit only to AC # xxxxxx”. Open a new account as suggested previously or have the check deposited into a non SEPP IRA if you have one already open. That was the lowest risk action as recommended in the prior discussion. I have received 3 of these settlements in 2009, and the most recent one involved activities that took place in 2003-04.2009-12-28 16:35, By: Alan S., IP: [24.116.165.60]

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