We’ve all seen that little “Live Chat” window pop up on our computers when we are browsing on certain websites. The anonymous text box repeatedly asks: “What is your name? How can I help you?” Unfortunately “help” isn’t always what you end up with when engaging in a live chat session.
As two taxpayers discovered, choosing to “Live Chat” with a random unknown customer service representative from a financial institution about your IRA transactions can be disastrous.
In Private Letter Ruling (PLR) 201452027, a taxpayer discovered that his IRA funds were deposited into an improperly titled IRA. Why is that a problem? He only had 60 days to complete the rollover and the error wasn’t discovered until the following year. The original transaction was accomplished with the help of the IRA custodian’s “Live Chat” feature on their website where customers can ask questions and make transactions on-line. The IRA titling error resulted in a failed 60-day rollover transaction – a fully taxable distribution!
Fortunately, the taxpayer had all of the necessary documentation to support the fact that it was an error due to the “Live Chat” representative’s advice and actions. The 60-day rollover waiver was granted but only after a lot of time and money was needlessly spent to obtain the PLR.
This recent PLR is a reminder of how important it is to not only speak with qualified professionals about your IRA but to also choose wisely when it comes to selecting your IRA custodian.
No comments:
Post a Comment