If the reporter cashed the check for the month of death (and any later months), do not ask for a refund. Advise the reporter that the Treasury Department (TD) may request the funds back from the bank that cashed the check for a period of up to 12 months from the month that SSA learns of the death.
For example, if 5% of your non-Roth IRA are non-deductible contributions, then 5% of the conversion amount must be non-deductible contributions, and the rest must come from the deductible contributions, including earnings and rollover contributions.
You can have all or any portion of your payment either (1) PAID IN A DIRECT ROLLOVER or (2) PAID TO YOU. This choice will affect the tax you owe. A rollover is a payment to a traditional individual retirement arrangement (IRA) that you establish for the purpose of receiving this death benefit.If you choose a DIRECT ROLLOVER: - Your payment will not be taxed in the current year and no income tax will be withheld.his choice will affect the tax you owe. A rollover is a payment to a traditional individual retirement arrangement (IRA) that you establish for the purpose of receiving this death benefit. If you choose a DIRECT ROLLOVER: - Your payment will not be taxed in the current year and no income tax will be withheld.