I initiated a 401K rollover of both cash and stock hares to an IRA at another institution--a direct transfer. The sending institution included the market value of the stock (plus the cash) on the 1099-R. The receiving institution provided a Form 5498 with only the value of the cash. They said because it was a direct transfer, or trustee-to-trustee, form 5498 does not report on the shares. Are they both right? Major question is will IRS flag the difference, and think some funds were withdrawn (even though Box 7 shows code G)? And btw, the difference is larger than the same day value of the shares, since it took almost 2 months longer to transfer the shares after the cash was transferred, and the value of the stock went down a lot.
