BulldogTom Posted January 28, 2023 Report Share Posted January 28, 2023 TP has 2 totally disabled adult children living with her. Ex-husband passed away in 2022 leaving his state retirement plan (CalPers) to the kids - 17K each. Kids get a 1099R. TP puts the money into a savings account for the children for future use. Couple questions: 1. Is Taxpayer still HOH since the money was not used on dependents for support? 2. Are the kids eligible to roll the funds to their own IRA since they are totally disabled? If so, is it too late because they already took possession of the funds? Thanks Tom Longview, TX Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted January 28, 2023 Report Share Posted January 28, 2023 1 hour ago, BulldogTom said: If so, is it too late because they already took possession of the funds? It would take a Private Letter Ruling to grant an extension of time for the rollover; and to show reasonable cause for a uniformed decision. I think they might have a case. I researched and filed a PLR several years ago and found a lot of favorable cases where mental capacity was compromised. My case was a surviving spouse who inherited husband’s funds, she was granted an extension of time to make the rollover from the date of the ruling. 1 Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted January 28, 2023 Report Share Posted January 28, 2023 Too many unknowns to get the full picture. SSI could be an issue (means test). Money put into ABLE or not? Dealing with finances of someone likely receiving aid is a specialty, with very few one stop resources. 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted January 28, 2023 Report Share Posted January 28, 2023 1 hour ago, BulldogTom said: Are the kids eligible to roll the funds to their own IRA since they are totally disabled? I would refer that question to a financial advisor. Quote Link to comment Share on other sites More sharing options...
Lee B Posted January 28, 2023 Report Share Posted January 28, 2023 Why would you roll it to an IRA. Do they have other taxable income? Quote Link to comment Share on other sites More sharing options...
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