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#2151637 - 10/30/17 04:23 PM IRA Escheatment
burkemi Offline
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Joined: Nov 2013
Posts: 549
How do we code the escheatment? It's not really a distribution per se. It's not a transfer or rollover....How is it coded? Additionally, when does the clock for escheatment begin for IRAs?

Any input or thoughts would be greatly appreciated!
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#2151646 - 10/30/17 04:49 PM Re: IRA Escheatment burkemi
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
See: Kentucky Revised Statutes Title XXXIV. Descent, Wills, and Administration of Decedents' Estates § 393.066. Presumption of abandonment of intangible personal property held by fiduciary

Not sure about the distribution code - you might have to check with the IRS, but it probably is a normal distribution to end the plan
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#2151692 - 10/30/17 07:09 PM Re: IRA Escheatment burkemi
burkemi Offline
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Thank you for the statute.

A normal distribution is all I can think of as well - just uncertain. Thanks again for your help.
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#2151697 - 10/30/17 07:25 PM Re: IRA Escheatment burkemi
Elwood P. Dowd Offline
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Elwood P. Dowd
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Based on the age of the participant according to your records; e.g. over 59 1/2 would be "normal." Under, "premature, no known exception."

Ironically, your reporting of the distribution is the last possible chance that the participant may be made aware of the funds existence. Unfortunately, he will find out about them by getting a deficiency notice from the IRS.
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#2151703 - 10/30/17 08:22 PM Re: IRA Escheatment Elwood P. Dowd
burkemi Offline
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Originally Posted By Ken_Pegasus
Unfortunately, he will find out about them by getting a deficiency notice from the IRS.


Ouch! Rough notice. Thanks for your answer. Greatly appreciate it.
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