IRA Question

Thanks to AI, it is now impossible to talk with a human being at
Fidelity where my IRA is and I can't seem to get the answer to a
simple question. I need to withdraw a fairly substantial amount
of cash temporarily (about 7k). I believe I can withdraw the money
and, if I replace it within a certain amount of time it won't count as a
withdrawal from a tax perspective. When I take money out and
don't replace it I get a 1099 so it is essentially income but I seem
to remember that if it is replaced during a short time period then
I won't get a 1099 but I don't know what that time period is and
the AI Chatbot is coming up with answers that are too generalized.
Does it make a difference that I am disabled?
Thanks in advance for any help anyone can give. It sucks contacting
customer service and not being able to talk to a human being.

 

I believe as long as you replace the funds within 60 days you should be OK.

If you need access to the funds for only a short while, there may be better options.

 

I can't think of any other way to do it.

 

think he's talking about starting an onlyfans account

 

Set up a loan from your account, you’re paying interest to yourself

 

I considered gigilo services but I don't have the energy
for that anymore.

 

you can also take a loan against your life insurance

 

I was aware that I could do that from an employer account
but I have my own rollover account and am not sure if it
works the same way. I am 69 and retired and disabled so
I don't know how that factors in either. I believe that if
it's a loan there would be no 1099, correct? I plan to put
it back as quickly as possible once my car is sold but that
process isn't going as planned and it looks like it will take
some time, meanwhile I will need to pay my roofer next
week or the week after depending on the weather.

 

I have no life insurance. I watch Unsolved Mysteries where
I learned that life insurance just gets you murdered by
unscrupulous relatives.

 

Rollovers of Retirement Plan and IRA Distributions | Internal Revenue Service (irs.gov)

Retirement Plans FAQs regarding Loans | Internal Revenue Service (irs.gov)

IYC, if you want to talk to someone about it further send me a PM.

 

This post is begging for an answer provided by ChatGPT.

 

I'm not a financial expert, but generally, what you're describing sounds like a "60-day rollover" rule. This allows you to take a distribution from an IRA, use the funds, and then return the money to an IRA within 60 days to avoid taxes and penalties. However, it's crucial to check with Fidelity or a tax professional to ensure this applies to your specific situation. Being disabled might have unique considerations, so seeking personalized advice is recommended.

 

If the dealers are dicking around why not post it up in Marketplace and Craigslist? I'm sure there's lots of buyers for that car that would gladly pay more than what the dealers are offering. Just be prepared for idiots and don't let them get to you- if at any point someone comes off as fishy or just plain stupid just ignore/block them. I just sold a (much less popular) car for my MIL and it took 2-3 days on FB before the one and only interested party showed up and handed me cash. A car like yours should have them lining up at your door.

 

Take the car, go to Carmax, accept offer that is $2K less than what you are trying to sell it for.

Crisis over.

 

Stay away from hookers and blow and you won't need emergency funding.

 

I put it on Craigslist, for some reason I'm having trouble with
a Marketplace post but I'll get it done.

 

You can only do 1rollover per year FYI. Probably won't matter in this case but wanted to pass it along

 

I have done it two times in two different years. Just make sure to get it all back in, and keep the paperwork, in my case I used 58 days.

This last time the IRS is being difficult and has sent me letters saying I owe all kinds of back taxes and penalties. My accountant sends them proof of the dates and the transactions. He said it is just the IRS being a pain in the a..

Also, I wouldn't call Fidelity about it and tell them what you are doing. Someone there told me when you roll funds out, and use it for something, and then put it back, but it wasn’t into another investment, they can say something to create issues for you? Not sure if that’s true, but the less Fidelity or the IRS knows on this, the better, IMO. Unless there is a special rule someone mentioned above allowing special cases for disabilities?

 

Do you see the issue?

 

I did that today.