Could I deposit a check I received from Edward Jones, cancelling my IRA account, into my personal checking account without being penalized?
I had a SIMPLE Individual Retirement Account through Edward Jones while working for M. Potteiger, Inc. I stopped working at this company to pursue college over two years ago. I was contacted by Edward Jones that my account contract was inactive for over two years and that they needed to close out my account. They sent me a check with the balance I accumulated, but I don't know whether I can put that check into my personal checking account without being penalized. Could you give me advice on what do?
If the funds came from a retirement account (SIMPLE IRA in this case) you need to deposit it into another retirement account to avoid taxes and penalties. Best and easiest case, Ed Jones sent you a check for 100% of the SIMPLE account and you deposit it into a traditional IRA account.
If you deposit it into a regular checking account you'll be able to make a subsequent transfer into an IRA within 60 days. !!The 60 days starts on the day the check was issued, not when you deposit the check!! Additionally, you need to know if ed jones withheld any taxes. In order to avoid any taxes or penalties, you need to make a deposit of the check plus anything they withheld.