Direct Transfer Roth IRA Conversion

Forum|Forum|6 years ago
March 9, 2020
2 replies
32 views

I did a direct transfer for my traditional IRA in to a Roth IRA from one trustee to another. When I contacted both banks, they both said they don’t need to issue me a 1099-r. Shouldn’t I receive the form showing the conversion amount that I should be taxed on? If so, which bank is supposed to provide it, the sending or receiving bank of the transfer?

VolvoGirl

Level 15

Your Traditional IRA Account should give you a 1099R probably with a G for the code. Did they take taxes out of the transfer? Call them again and ask someone else.

MrEus1Author

Level 2

@VolvoGirl Thanks for the response. I don’t think they took any taxes because I marked the form for them not to because I was planning to just pay it on my taxes. The amount transferred was $25 less but I think that was for some random fees for the transfer. I’ll try to call again and see if someone else is more helpful.

dmertz

Level 15

Apparently the traditional IRA custodian thought that you were trustee-to-trustee transferring to another traditional IRA. However, what you did is a Roth conversion, not a trustee-to-trustee transfer between IRAs of the same type. It's not clear whether the Roth IRA custodian thought you were trustee-to-trustee transferring from another Roth IRA or if they will be showing on Form 5498 receipt of a Roth conversion contribution.

Had this all been done properly, the traditional IRA custodian would have issued a code 1 (if you were under age 59½) or code 7 (over age 59½) Form 1099-R. Unless you can get the traditional IRA custodian to correct their records as to the type of transaction and issue a Form 1099-R, you'll need to submit a substitute Form 1099-R with the amount in boxes 1 and 2a, box 2b taxable amount not determined marked, code 1 or code 7 in box 7 depending on your age and the IRA/SEP/SIMPLE box marked.