IRA to Moneymarket

[Oxtrainer]

Client has a 1099R IRA distribution about 40000 code 7 total distribution taxable 40000
Client says it was rolled over to a money market account.
Has letter from Shwab investments that says IRA rollover at the top and Bottom.
This letter has list of Moneymarket investments and at the bottom 40000 where it
says IRA rollover.
My question is (Can a IRA be rolled over into a Money Market Account) Where
do I find this in he Taxbook if it can be? Can it be non-taxable?
I hope I give enough info.
Any info is greatly appreciated

[ChEAr$]

What you have to do

is look at the money market statement to see how it's titled. Unless it states that
the account IS actually an IRA, it's just a plain money market account and therefore
taxable.

Always get the documentation.

[Bucky]

You can roll IRA to money market, cd, savings account etc. Did he get anything showing taxable dividends or interest.That would be a dead giveaway it was not an IRA. You might ask for the IRA application and also make sure it was rolled within the 60 day period.

[Oxtrainer]

IRA to Money Market

Thanks to both of you. I consider that good advice and is much appreciated. I never
thought of looking for dividends or interest and I will assure that it is an IRA.

[S T]

What might have happened

T/P cashed out his IRA from the institution that issued the 1099R form, rather than performing a trustee to trustee rollover, code G. T/P has 60 days in which to restore the monies into a qualified IRA. In which case the institution issuing the distribution has no other choice but to issue as a code 1 or code 7. They are not aware of the rollover!

Money market at a different institution could be a qualified rollover, if done within specified period of time, and account opened as a "rollover" IRA.

As stated above, check the paper work and follow the "trail"

If it was not an IRA rollover but rather a 401K distribution, the 1099R could have been issued because there was an outstanding loan against the t/p 401K account, just a thought!

Sandy