.jpg)
A Trustee is Asking for IRA Funds because it did not come from
IRA exemption alert!!:
I have a trustee demanding turnover of IRA funds because the Debtor testified that he used proceeds of a sale to fund it. The Trustee is taking the rather narrow position that the funds must directly come from earned income, as if the IRS would require some sort of tracing to make the funds qualified.
It has always been my understanding that the Debtor must have earned income sufficient to fund an IRA, but not that it must come directly from earnings. My Debtor is working and had more than sufficient earnings to fund his IRA.
It seems to me to be irrelevant that at the time of the contribution most of the funds in the bank were from some other source.
Does anyone IRS letter rulings or something else that supports my position?
Steve
Law Offices of Steven B. Lever
Steven B. Lever
* Tel. (562) 436-5456 ext. 1
* Fax (562) 485-6886
* sblever@leverlaw.com
www.leverlaw.com
******************************************************
This Internet e-mail contains confidential information
which is intended only for the addressee and which may
be privileged under applicable law. Do not read, copy
or disseminate it if you are not the addressee. If you
have received this message in error, please notify the
sender immediately and delete it. Thank you.
******************************************************
IRA exemption alert!!:
I have a trustee demanding turnover of IRA funds because the Debtor testified that he used proceeds of a sale to fund it. The Trustee is taking the rather narrow position
that the funds must directly come from earned income, as if the IRS would require some sort of tracing to make the funds qualified.
It has always been my understanding that the Debtor must have earned income sufficient to fund an IRA, but not that it must come directly from earnings. My Debtor is working
and had more than sufficient earnings to fund his IRA.
It seems to me to be irrelevant that at the time of the contribution most of the funds in the bank were from some other source.
Does anyone IRS letter rulings or something else that supports my position?
Steve
Law Offices of Steven B. Lever
Steven B. Lever
(
Tel. (562) 436-5456 ext. 1
(
Fax (562) 485-6886
*
sblever@leverlaw.com
www.leverlaw.com
******************************************************
This Internet e-mail contains confidential information
which is intended only for the addressee and which may
be privileged under applicable law. Do not read, copy
or disseminate it if you are not the addressee. If you
have received this message in error, please notify the
sender immediately and delete it. Thank you.
******************************************************
The post was migrated from Yahoo.