dmertz
Level 15

Retirement tax questions

No, code G is only for a direct rollover to or from a qualified retirement plan, not for a trustee-to-trustee transfer to move an IRA.  If a Form 1099-R is issued for an IRA trustee-to-trustee transfer, it is issued in error and a request should be made for a corrected code G Form 1099-R showing that no distribution took place.

(Some people mistakenly believe that their qualified retirement plan is an IRA when it's not.  The assumption here is that this is indeed a trustee-to-trustee transfer to move an IRA.  If the original account was in a qualified retirement plan and the code G Form 1099-R is correct, yes, it must be entered.)