A retired police officer rolled his 457 into an IRA, I think.

Forum|Forum|6 years ago
March 8, 2020
7 replies
33 views

His retirement advisors told him he would not have to pay the penalty since he is age 50 and retired from the police force and it was a 457 plan. BUT the 1099-R forms says it came from an IRA so I assume it was rolled at some point in time. And they coded it with a distribution code 1 and on the form 5929 exception A is for plans that are not IRAs. Any suggestions? I was thinking of telling him to ask for a corrected 1099-R with a code 2 instead of a 1?

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Best answer by IRonMaN

Go back to those retirement "experts" and get some more details.

IRonMaNAnswer

Level 15

Go back to those retirement "experts" and get some more details.

Slava Ukraini!

qbteachmt

Level 15

Ask him for the 5498 that is Money In to the retirement account.

You don't want to "I think" this. You want the supporting evidence.

Don't yell at us; we're volunteers

U

utah-arizona-taxladyAuthor

Level 6

I may have that from a previous year. I will check. Good idea.

BobKamman

Level 15

The advisers wanted to get control of the money so they could earn commissions on it. He lost the 457 exception when he rolled it over to the IRA, but he gained a FINRA case if he can prove it was done on their advice.

Incidentally, a client who left her funds in a 457 (Nationwide) had to fight them two years in a row to get the code changed from 1 to 2. The company told her to use the Form 5329. I told them where to put it.

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