My jurisdiction is: Texas
Last year I bought a new house which I paid half in cash. In order to get the cash, I needed to sell my current home. Well that didn't happen in time to close on the new house so my Financial adviser told me I could borrow against my 401k, and as long as I replaced it in 60 days, there would be no penalties or taxes. SO that's what I did, I borrowed the money, got into the new house and then crossed my fingers and prayed I would sell my old home. And I did, just in the nick of time, but of course at a substantial loss because I was desperate to replace that money to avoid taxes and penalties and the buyers agent knew it. I closed on a Thursday and the deadline for the 401K was that following Tuesday, so I made sure that all was in place for a wire transfer that would post most likely that Friday but no later than that Monday. I kept in close contact with my adviser and his secretary, ironing out all the details to make sure everything went as planned, which they assured me would. Whew, all was good, celebrations, cocktails, luck was on my side for a change, NOT. I talked to the secretary about a week or so later about something non-related and asked about the money making it back into my 401K. Oooops, they forgot to transfer it. It was still sitting in my money account. Even after all the emails, phone calls, the 2 agonizing months that I kept in contact with my adviser, they FORGOT! I don't feel that it should be my fault, but does the responsibility fall ultimately on me, or do I have any recourse with my adviser?? The amount was $161,485, so do I have to pay taxes, penalties on that amount? Also, I was advised that here in Texas, if you sell your home but reinvest the proceeds into another, you don't have to pay taxes on the sale. So am I now responsible for paying taxes on the sale of my home as well? I'm so scared about this.....I can't bring myself to do my taxes and all those tax commercials are driving me CRAZY!
I've been with my adviser for years, I was one of his first clients and I followed him from Merrill Lynch to the now blackballed Stanford, so needless to say, I'm screwed again because I can't get to ANY of my money now and I need to pay property taxes and car insurance by the end of this week, but that's another story.
Thank you,
Last year I bought a new house which I paid half in cash. In order to get the cash, I needed to sell my current home. Well that didn't happen in time to close on the new house so my Financial adviser told me I could borrow against my 401k, and as long as I replaced it in 60 days, there would be no penalties or taxes. SO that's what I did, I borrowed the money, got into the new house and then crossed my fingers and prayed I would sell my old home. And I did, just in the nick of time, but of course at a substantial loss because I was desperate to replace that money to avoid taxes and penalties and the buyers agent knew it. I closed on a Thursday and the deadline for the 401K was that following Tuesday, so I made sure that all was in place for a wire transfer that would post most likely that Friday but no later than that Monday. I kept in close contact with my adviser and his secretary, ironing out all the details to make sure everything went as planned, which they assured me would. Whew, all was good, celebrations, cocktails, luck was on my side for a change, NOT. I talked to the secretary about a week or so later about something non-related and asked about the money making it back into my 401K. Oooops, they forgot to transfer it. It was still sitting in my money account. Even after all the emails, phone calls, the 2 agonizing months that I kept in contact with my adviser, they FORGOT! I don't feel that it should be my fault, but does the responsibility fall ultimately on me, or do I have any recourse with my adviser?? The amount was $161,485, so do I have to pay taxes, penalties on that amount? Also, I was advised that here in Texas, if you sell your home but reinvest the proceeds into another, you don't have to pay taxes on the sale. So am I now responsible for paying taxes on the sale of my home as well? I'm so scared about this.....I can't bring myself to do my taxes and all those tax commercials are driving me CRAZY!
I've been with my adviser for years, I was one of his first clients and I followed him from Merrill Lynch to the now blackballed Stanford, so needless to say, I'm screwed again because I can't get to ANY of my money now and I need to pay property taxes and car insurance by the end of this week, but that's another story.
Thank you,
