I made a rollover from an 401K to an IRA at a brokerage house this year and received a 1099 from the 401K custodian. I also made several transfers of existing IRA accounts to two brokerages. I have not received 1099's in those cases. Are broker to broker transfers handled differently? Does IRS get notified on the IRA transfers?
1099S for IRA rollover to Broker vs Broker to Broker
Feb 21, 2009
2 Replies
My experience with trustee to trustee transfers over the last 15 years is that there is no consistent policy. If you get a 1099 on a trustee to trustee transfer include the amount on line 15a but exclude it from line 15b and write the word rollover.
I agree. the only way to avoid triggering a 1099 on an IRA rollover is through "custodial transfer". The banks usually charge a fee for it in this area around 20 bucks.
Join the Discussion
Have something to add? Share your thoughts — no account required.
Didn't find your answer?
Ask the community — no account required