dMertz...you have answered the first half of my question quite clearly. Thx for that.
Regarding the second half, sorry for the confusion. Box 7 is "J". The IRA, SEP or SIMPLE box is "no".
The custodian told me J indicates I transferred from a Roth IRA to a non IRA. (I hope my understanding is correct?)
This is what the custodian sent me yesterday,
"To confirm, the redemption of assets will be coming out of the individual account and be
returned to a Roth IRA, which will be your requested Equity mutual fund. Taxes on the short-
term and long-term gains will be paid in 2027.
Keep in mind that because these transactions will occur in tax year 2026, they will appear on
tax forms generated in 2027. You will receive IRS Forms 1099 for the gains that will happen
from the distribution from your individual account. You will also receive IRS Form 5498 for the
contribution to pair with all the documents for the self-certified rollover. You will also receive
confirmation of the contributions.
Please note that these amounts will affect your 2026 taxes; however, each type of transaction
affects differently so it may not necessarily affect your income. "
dMertz, I'm not clear what is triggering these capital gains as original acct was a ROTH. Are they saying when I move it back to a ROTH, I will trigger those gains? My goal here is to NOT have to pay any capital gains, esp after the penalty is resolved. Pls help me understand. As it's a ROTH, I've obviously already paid taxes. Thx, dMertz.
