My IRA liquidated and stopped being an IRA

[Tatume]

The problem with getting a check is that the company will withhold some percentage of the money for taxes, generally 20%. You can still roll over the full amount, you just need to come up with the 20% they withheld and include it in the rollover. You will then get a tax refund of the 20% that was withheld when you file.

Not necessarily true. When I did it the check was for every penny in the account. Again, trust a professional, not Internet advice. Find a company you trust, and an agent you like, and have the agent contact the existing IRA holder and negotiate the transfer into a new IRA for you. You may have to be present; we did mine in a three-way telephone conversation. The agent for the old IRA verified my identity, and asked "do you give permission for the third party to speak for you?" Once I replied in the affirmative, all I had to do was listen. Get professional help.

[Outer Rondacker]

If you cannot quickly choose another investment, you can leave it as an IRA in a money market account… which is basically a savings account with zero interest.
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I don’t know which broker you hold this IRA with; Fidelity, Vanguard, etc. Whoever it is, it seems like they are not acting in your best interest here. The default in this situation should be to move the funds to a money market account, still within your IRA. So, change your broker. I suggest Vanguard.

This is what we had to do two years ago. The IRA was losing money fast so they did a early forced payout. We rolled it over to one of the big names and since The BIG GUY was in office and nothing was making any money I left it as IRA CASH. So it basically makes nothing and can loose nothing. FDIC approved. This is ok until you figure out what to do but do it asap. Good luck and sorry to hear this happened to you.

[garandsrus]

Not necessarily true. When I did it the check was for every penny in the account. Again, trust a professional, not Internet advice. Find a company you trust, and an agent you like, and have the agent contact the existing IRA holder and negotiate the transfer into a new IRA for you. You may have to be present; we did mine in a three-way telephone conversation. The agent for the old IRA verified my identity, and asked "do you give permission for the third party to speak for you?" Once I replied in the affirmative, all I had to do was listen. Get professional help.

I agree with you, don’t listen to internet advice. I would listen to the IRS though :
https://www.irs.gov/retirement-plans...-distributions

Will taxes be withheld from my distribution?
IRAs: An IRA distribution paid to you is subject to 10% withholding unless you elect out of withholding or choose to have a different amount withheld. You can avoid withholding taxes if you choose to do a trustee-to-trustee transfer to another IRA.

Retirement plans: A retirement plan distribution paid to you is subject to mandatory withholding of 20%, even if you intend to roll it over later. Withholding does not apply if you roll over the amount directly to another retirement plan or to an IRA. A distribution sent to you in the form of a check payable to the receiving plan or IRA is not subject to withholding.
How much can I roll over if taxes were withheld from my distribution?
If you have not elected a direct rollover, in the case of a distribution from a retirement plan, or you have not elected out of withholding in the case of a distribution from an IRA, your plan administrator or IRA trustee will withhold taxes from your distribution. If you later roll the distribution over within 60 days, you must use other funds to make up for the amount withheld.

Example: Jordan, age 42, received a $10,000 eligible rollover distribution from her 401(k) plan. Her employer withheld $2,000 from her distribution.

If Jordan later decides to roll over the $8,000, but not the $2,000 withheld, she will report $2,000 as taxable income, $8,000 as a nontaxable rollover, and $2,000 as taxes paid. Jordan must also pay the 10% additional tax on early distributions on the $2,000 unless she qualifies for an exception.
If Jordan decides to roll over the full $10,000, she must contribute $2,000 from other sources. Jordan will report $10,000 as a nontaxable rollover and $2,000 as taxes paid.

[1006]

If you call Fidelity, Schwab, Vanguard, or any of the other big names in the IRA business, they will send you a link with forms to fill out. The forms will authorize them to open an IRA account for you, and authorize them to go and get your money from the current account in which the money is invested.

As stated: act quickly.

[Tatume]

I agree with you, don’t listen to internet advice. I would listen to the IRS though:

The IRS used to post a notice to the effect that they may be wrong, but that doesn't excuse you if you follow their incorrect advice.

[MrWolf]

Just remember, each taxpayers situation could be very different. It will cost more that just taxes and penalties if a mistake is made. You will be paying a professional to make your appeal to the IRS which could also cost you quite a bit. Issues such as constructive receipt (you are cash basis) when a check is sent to you at calendar year end could be fun. Just like with our hobby, what works in one firearm does not necessarily make it gospel in every firearm.

[pmer]

Thanks for all the input! I'm signing a roll over tonight after work, I'm 58 years old and understand i could've been taxed extra hard if this would be income.

In post #23, I got to see how that played out because my daughter got a 1099-R for last year and she had to pay an extra 10%. She switched jobs and luckily the amount was only $161.00 and the 10% = $16.

About 10 years ago, I got a check from an IRA that was the full amount (for a roll over) and it seemed to have went easier than what members are saying now but it still had some stress. I'm glad this is a direct roll over with no checks in the mail this time.

[bosterr]

To the OP, what's the name of your investment firm?

[MT Gianni]

I have rolled money over to different accounts several times. In each case, the company would withhold taxes unless I supplied them with the name and number of the account that the money was going to. The check came to me to be deposited in that account the first time. On the later ones they wanted a direct rollover electronic deposit.

[pmer]

To the OP, what's the name of your investment firm?

I'm in an small cap independent brokerage that looks for value stocks. No big name companies like Fidelity etc. My investor isn't looking for new business but likes to help young couples get started, I got in there about 20 years ago through my dad when they did the 401K for the place where he worked. It was a medium risk fund with about 30 holdings, it took 2 big hits during covid but came out of that with 20% gains before it was liquidated. So overall it ended with a mediocre gain while I had it.