I received 1099-R. The box 7 shows distribution code 7, and IRA/SEP/SIMPLE.
I closed an IRA CD in my bank. They said cant do rollover, I must send the bank-issued check myself. I sent the check to Vanguard, after I discussed this rollover with an agent by phone. He said: just send the check and enclose a note - rollover.
Spoke to Vanguard today after received the IRS letter demanding additional taxes because the rollover was not reported by Vanguard. Vanguard agent says the transaction was processed as transfer of funds.
Which they are not required to report to IRS.
Very confusing to me: Google says that transfer of funds happens between the same types of IRA and rollover between different types of IRA. So the bank people considered this a rollover, while the Vanguard people - the transfer of funds. Was it me who has done something wrong? Or IRS regulations confusing (if Vanguard was required to report the transfer of funds I would not have this headache)
Sorry for a long post.
Thanks
