Retirement Planning/rollover/irs


I am in the process of rollingover my pension into a traditional ira. However I owe the irs appx. $18,000. I intend to do a offer of compromise with the money and Im concerned the irs will get their paws on it before that!    
         Thank's,   Bill

The Financial QB
The Financial QB  
Thanks for your question and I am not sure if I can provide any constructive answer. Unfortunately when dealing with the IRS they can use a lot of their power to garnish wages, investments, and/or bank accounts in order to collect your failure to pay taxes due. Not knowing how long you have had this dark cloud over your shoulder or the amount you owe, I would say that as long as you are abiding by the agreement set forth with the IRS, you should be OK. However, if you are not able to abide by the agreement they could definitely attach to your IRA in order to collect on the tax. Also be mindful that you will also owe the tax and 10% penalty on the IRA.

Hope this helps some. Best thing you can do is pay the IRS.  

Retirement Planning

All Answers

Answers by Expert:

Ask Experts


Richard E. Reyes, CFP


I can provide answers to questions relating to retirement especially relating to; income distribution, tax efficiency, long-term care insurance, life insurance, estate planning, asset protection, variable and fixed annuities, alternative investments and prudent portfolio design.


Through the years Richard has built a reputation as one of Central Florida's expert on retirement income distribution by providing sound, unbiased wealth coaching. We believe that Financial Planning is the problem and Wealth Coaching is the solution. The Wealth Coaching process gives you Peace of Mind, so you can stop worrying about your future. It helps you find happiness as it guides you in the TRUTH of investing, by teaching you how to make wise choices as you journey through your life’s stages. It is all about your relationships and what you value, not your net worth.

Seminole Success Magazine “Retirement Planning” Seminole Success Magazine “Small Business Snapshot” The Orlando Sentinel – Ask the Expert Financial Section (Various) Greater Orlando Broker Agent Magazine “The New It” Senior Market Advisor “Random Reader, Random Questions”

B.S. University of Florida, Gainesville, FL
CFP Certificate, University of Central Florida, Orlando, FL

©2016 All rights reserved.