dmertz
Level 15

Retirement tax questions

It's a bit odd that they did not transfer the fractional shares since there is really in nothing that would prevent them from doing so (unless Transamerica has a concern that they may carry more decimal places than Fidelity, in which case there would be a round-off error, but there are almost always round-off errors on the order of a penny when converting between fractional shares and dollars, so why would it matter).

 

Regardless, there is no problem.  Transactions within the IRAs are nonreportable, and the initial partial transfer and the subsequent full transfer are nonreportable.  There is no distribution or rollover, so there is no concern about triggering the one-rollover-per-12-months limitation.

 

In addition to Transamerica not issuing a Form 1099-R for this transfer, Fidelity will not report a rollover on Form 5498.  Nothing about the transfer goes on any tax return.