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

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?

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Attorney answers 2


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.


Consult with a CPA or a Certified Financial Planner.

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