Stacey Marks: Distribution from Account That Ceased Being IRA Is Nontaxable

In Stacey Marks v. Commissioner, TC Memo 2018-49, the Tax Court held that an IRA was treated as making a premature distribution in 2013 due to a failed rollover.  However, because the court determined that the account was not an IRA because the administrator had engaged in a prohibited transaction in 2005 causing the IRA to cease to be an IRA, the premature distribution in 2013 was not taxable.

For full opinion, click Marks v. Commissioner. 

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.

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