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MaximumRecursion OP t1_iu9rk37 wrote

Reply to comment by DeluxeXL in Asked Edward Jones to rollover my IRA to Charles Schwab, and they took out federal income tax, even though I made it perfectly clear it's a rollover, not a disbursal. by MaximumRecursion

>An indirect rollover is when money is sent to you from the first IRA trustee, and you send the money plus any taxes withheld to the next IRA trustee. This is the term you've been using.

Are you saying I just include the amount withheld in taxes from my own momey when depositing the check I got?

And, presumably, I get that money back when completing my taxes at the end lf the year?

I just don't want to lose $4400 for just moving my retirement from a predatory company like Edward Jones to my own account.

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DeluxeXL t1_iu9rpc3 wrote

> Are you saying I just include the amount withheld in taxes from my own momey when depositing the check I got?

Yes. Cover the taxes withheld out of your pocket for now. But don't just deposit the checks. You must tell Schwab that these are indirect rollovers. Otherwise it can't distinguish between a rollover and a contribution.

> And, presumably, I get that money back when completing my taxes at the end lf the year?

Yes. The 1099-R will show the taxes withheld. Enter into your tax return.

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