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needHelpWithRoth OP t1_je93ayb wrote

Reply to comment by sciguyCO in IRA Institution (Merill) Cannot Code Deposit as 60 Day Rollover by needHelpWithRoth

Thanks for providing background and the explanation! So what you are saying is that the Merrill coding actually doesn't matter to the IRS? If Merrill calls the deposit a "contribution" and this puts me over the annual contribution limit, the IRS can do the math and see that a lump some of money came out and then went back in within 60 days so they automaticaly know it is an indirect rollover?

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sciguyCO t1_je9ticu wrote

I was just talking through why the IRS allows an indirect rollover that ends up in the same IRA the money was originally removed from.

AFAIK, the coding of a "rollover deposit" vs. "contribution" is still important to the IRS, and is something that needs to get properly done on Merril's side. Each year, your IRA provider generate a Form 5498 to report all the contributions made into that IRA for a given tax year. There are separate boxes on that for "IRA contribution", "Rollover contributions", "Roth contribution", etc. If the money you're depositing now ends up included in the "IRA contribution" box for your 2023 5498, then things will get tricky. I'm not sure if that's something that can be retroactively corrected, either with the brokerage or how you report details on your tax return.

I'm also not familiar with Merril's processes, so can't really offer much help on how to get them to do what you want. Sounds like you're making progress, so all I can offer is wishing you good luck.

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