What to do about IRA contributions claimed but no IRA ever opened.

Asked over 1 year ago - San Francisco, CA

For 15 years I've claimed simple IRA contributions but I didn't make them to an official IRA account, through my own stupidity I guess. I thought I could just put money in investments/savings but now realize it has to be an official account.
Am I completely screwed? Is there anything I can do, like officially creating an IRA now, then taking distributions from it when I'm required to at 70 1/2 years old, or is that pointless now and I should expect to be fined/prosecuted about this?
I'd planned on taking distributions and paying taxes on that but it seems like it has to be covered by a 1099 or some other reporting form?
Thanks for your help: didn't mean to break the law, and should I get an attorney to sort this out? Or just hope they don't ever notice at IRS?

Attorney answers (2)

  1. Christine James

    Pro

    Contributor Level 19

    3

    Lawyers agree

    1

    Answered . Did you put the money in an investment account? If so, contact a CPA and discuss your options. Even if you didn't, I would still contact a CPA. This is really an accounting question not a legal question.

  2. Craig Martin Scalise

    Contributor Level 12

    1

    Lawyer agrees

    Answered . Consult with a CPA or a Certified Financial Planner.

    Mr.Scalise offers a FREE 30 minute phone consultation; he may be reached at 805-244-6850 or by email (craig@... more

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