Tax Penalties

[overthismess]

I receive a small, less than $500.00 no taxes being taken, check monthly. I put the money into an IRA within the 1st or 2nd day after I receive it as I have yet to fill out all the paperwork to have it directly deposited from an out of state bank to a local credit union in NC. What kind of tax penalties am I facing with this two or three day gap. Thanks in advance !!!!

[llworking]

I receive a small, less than $500.00 no taxes being taken, check monthly. I put the money into an IRA within the 1st or 2nd day after I receive it as I have yet to fill out all the paperwork to have it directly deposited from an out of state bank to a local credit union in NC. What kind of tax penalties am I facing with this two or three day gap. Thanks in advance !!!!

What is the source of the monthly check?

[overthismess]

What is the source of the monthly check?

Retirement from FL..

[llworking]

Retirement from FL..

If you are currently employed, and under age 70 1/2, then you need to be careful about what you are doing. Basically you have two completely separate transactions. You are receiving taxable distributions from your retirement account, and then you are making deductible IRA contributions, but you can only make IRA contributions to the maximum that you are allowed under the law.

If you are not working, or are over 70 1/2, then you need to be consulting a tax professional ASAP. I realize that you are attempting to do a rollover of sorts, but without doing some research I am uncertain that this would qualify as a rollover. Its an unusual situation.

If the fund from which you are receiving the money isn't something that you can roll over into another account (ie its a true pension), then you definitely would have some problems with what you are doing if you are not working or are over 70 1/2.

[overthismess]

If you are currently employed, and under age 70 1/2, then you need to be careful about what you are doing. Basically you have two completely separate transactions. You are receiving taxable distributions from your retirement account, and then you are making deductible IRA contributions, but you can only make IRA contributions to the maximum that you are allowed under the law.

If you are not working, or are over 70 1/2, then you need to be consulting a tax professional ASAP. I realize that you are attempting to do a rollover of sorts, but without doing some research I am uncertain that this would qualify as a rollover. Its an unusual situation.

If the fund from which you are receiving the money isn't something that you can roll over into another account (ie its a true pension), then you definitely would have some problems with what you are doing if you are not working or are over 70 1/2.

Thanks for the advice.. I'm employed ,under 70.Guess i must investigate further.