USA Roth IRA Misclassified by Vanguard


Joined
Apr 21, 2019
Messages
1
Reaction score
0
Country
United States
We opened a Vanguard IRA in 2001 and it was supposed to be a Roth. We made contributions in 2001, 2002 and 2003 and all years were under the allowable $3000 limit. Now we want to take out the money (over $12,000) and it should be tax free (we are over 59-1/2). But we never noticed that they set it up as a traditional IRA instead and will send us a 1099 with a "normal" distribution code including taxable income. Vangard says we have to deal with it ourselves, but apart from having our tax returns that show we did not take IRA deductions, I'm not sure what to do. Any advice would be appreciated. Thank you!
 

kirby

VIP Member
Joined
May 12, 2011
Messages
1,538
Reaction score
212
Country
United States
You need an atty and your best evidence would be the original paperwork where you indicated this was to be a Roth acct.
 
Ad

Advertisements

bklynboy

VIP Member
Joined
Oct 12, 2011
Messages
547
Reaction score
99
Country
United States
Unless you have paperwork that shows otherwise you are not going to win on this. Vanguard had you sign a new brokerage account form and my suspicion is it says its IRA. Unless that is incorrect or you have other correspondence you will be hard pressed to claim it as tax free under Roth.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top