I have two accounts at an on-line brokerage house; (1) is my IRA rollover and (2) is my personal post-tax investment account. I have been living off of my personal investment account for the past 12 months while unemployed by sell stock and transferring the cash to my personal bank account. I am not over the 59 1/2 age bracket...yet.
I have similar stocks in both accounts and unfortunately I mistakenly sold about $5000 of stock from my IRA account and transferred that to my bank account and used it for monthly bills. I did not notices the mistake for about 60 days when I realized that I was missing 50 shares of a particular stock in my IRA account.
(1) What is the best (easiest) way to clean this up?
(2) If I do not have any income this tax year and my effective tax rate will be zero - is it advisable to not pay the money back to the IRA and take any penalty?
(3) What are the penalties - 10% penalty? Can that be offset by other itemized tax deductions that I will not be able to use do to no income?
Thanks for your help and suggestions.
Tim
I have similar stocks in both accounts and unfortunately I mistakenly sold about $5000 of stock from my IRA account and transferred that to my bank account and used it for monthly bills. I did not notices the mistake for about 60 days when I realized that I was missing 50 shares of a particular stock in my IRA account.
(1) What is the best (easiest) way to clean this up?
(2) If I do not have any income this tax year and my effective tax rate will be zero - is it advisable to not pay the money back to the IRA and take any penalty?
(3) What are the penalties - 10% penalty? Can that be offset by other itemized tax deductions that I will not be able to use do to no income?
Thanks for your help and suggestions.
Tim