Early this year, Scott Lowe, age 54, became dissatisfied with the service he was receiving from the broker who managed his traditional IRA He requested a distribution of the $48,200 balance in the account and received a check for this amount from the broker on May 23 Scott planned to roll the distr...

This case is based on Ltr Rul 200417034 in which a taxpayer in Scott Lowes position requested a waiv ...

Early this year, Scott Lowe, age 54, became dissatisfied with the service he was receiving from the

Question:

Early this year, Scott Lowe, age 54, became dissatisfied with the service he was receiving from the who managed his traditional IRA. He requested a of the $48,200 balance in the account and received a check for this amount from the on May 23. Scott planned to roll the over into a new IRA with a different Before he could do so, he received news that his son-in-law had died in a hunting accident. Scott immediately traveled to his daughter’s home to console her and his grandchildren. During this period of trauma and confusion, Scott wrote a check for $48,200 to his new but failed to instruct the to put the money into an IRA. Instead, the invested it in a taxable money market account. Scott and his did not discover the mistake until late December. Must Scott include the $48,200 withdrawal in his gross income and pay a $4,820 premature withdrawal penalty?
Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...