I have Roth IRA funds invested in a bank 2 year Certificate of Deposit (CD).
I opened this CD February 2012, it matures Feb 2014.
I am 70 years old.
Will I get a yearly IRS 1099 for the interest earned on this Roth CD?
?or will I only get a 1099 at the CD maturity?
?..or will I _NEVER_ be issued a 1099?
Unhappily, I get conflicting answers at the bank where I purchased this CD.
Tnx folks??..
Lee C.
1099-INTs are never issued for any type of IRA or qualified retirement plan.
" Thank you" for the prompt response! I should have worded my query a bit differently. Please let me try again:
Will I get a yearly IRS 1099 of any kind (INT, DIV, R, B, etc) for the interest earned on this Roth CD? No distributions are involved.
or will I only get a 1099 (of any kind) at the CD maturity?
..or will I _NEVER_ be issued a 1099 of any flavor?
Thank you for responding.
Lee C.
1099-INTs are never issued for any type of IRA or qualified retirement plan. ==============...SHOULD never be issued ....
Banks make all kinds of tax mistakes.
You should not receive any 1099-INT or DIV, ever. You should get an annual Form 5498 reporting year end balance in your IRA.
When the CD matures, and whether you take a distribution from the Roth IRA, are two separate events. By default, the bank will undoubtedly renew the CD (within the IRA) at then-current rates if you don't take action during the brief grace period after maturity.
If and when you eventually take a distribution from this IRA (again, no connection to when your CD matures), you will probably receive a 1099-R.
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