FINRA award settlement
On a IRA account that due to churning was award a settlement, how do we deposit the loss funds /award back into the clients IRA account
Thanks
On a IRA account that due to churning was award a settlement, how do we deposit the loss funds /award back into the clients IRA account
Thanks
Permalink Submitted by Alan - IRA critic on Tue, 2019-06-11 16:00
Usually the custodian will accept the check endorsed to deposit to the IRA as a non reportable transfer meaning no 5498 will be issued and the sponsoring legal firm will also not issue a 1099R. These are called “restorative payments” and the client should make sure the IRA custodian understands this. These should not be treated as rollover contributions as that could affect the one rollover per 12 month limitation.
Permalink Submitted by Al Figliolia on Wed, 2019-07-17 18:49
On a FINRA award, what is the requirement in calculating the percentage for each participant in a Profit Sharing Plan?