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A Trustee is Asking for IRA Funds because it did not
Your position makes sense to me. I suggest looking at the IRS regs for
funding IRAs for authority.
On Jul 26, 2016 6:34 PM, "'Steven B. Lever' sblever@leverlaw.com [cdcbaa]" wrote:
>
>
> 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
>
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Your position makes sense to me. I suggest looking at the IRS regs for funding IRAs for authority.
On Jul 26, 2016 6:34 PM, "'Steven B. Lever' sblever@leverlaw.com [cdcbaa]" <cdcbaa@yahoogroups.com> wrote:
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. 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
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