When a t/p rolls-over a Simple IRA to a Traditional IRA, from one trustee to another trustee, is a tax form required to be issued by the old trustee to t/p?
A popular mutual fund company (the old trustee) is telling t/p that no form is required to be issued, because the rollover transaction was trustee to trustee and non-taxble.
I don'r recall ever seeing a rollover without a form. Can someone clarify? and if a form is to be issued what is the number? Thanx.
Only if the SIMPLE is less than 2 years old. See the instructions for the
1099-R, which is the form used to report IRA distributions.Direct transfers from one traditional IRA custodian to another do not require a 1099, but some custodian's do issue them.
in article snipped-for-privacy@j39g2000yqn.googlegroups.com, snipped-for-privacy@aol.com at snipped-for-privacy@aol.com wrote on 3/13/09 3:44 PM:
I generally see a 1099-R issued with distribution code G, direct transfer between custodians. The gross distribution value in box 1 if the value of the account and box 2, the taxable amount is $0. The gross distribution amount shows up in box 15a or 16a of the form 1040 but nothing is taxable. If nothing is reported to the IRS, I don't see any problem with not reporting it.
Uncompensated advice guaranteed correct or double your money back
Frank S. Duke, Jr. CPA Cincinnati, OH USA
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.