I had a forced early distribution from an IRA. The assets were sent to a transfer firm. Since I didn't request it, and wasn't sent to me directly, should I get a 1099-R?

[CathiM · Accepted solution]

Although this has no affect on your taxes, you should be getting a 1099-R that shows the Box 2 taxable amount  as $0.  Also, Box 7 should show "Code G—Direct rollover of a distribution to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA. or Code H—Direct rollover of a designated Roth account distribution to a Roth IRA".

If you receive the 1099-R, you should enter it in your tax return. If not, then the transfer must have been done without closing the account and reopening a new one and you don't need to include it.

[mike126beatles]

Ok, thanks. The only thing is it was transferred to an individual, not a retirement account. Does that make a difference?

[CathiM]

I thought the "transfer firm" meant a retirement account at a different firm.  If it went to an individual, they have 60 days to redeposit it into another retirement account or it does become taxable.  There are exceptions to the penalty on early withdrawal of retirement accounts, things like education, medical expenses, first time home buyer, disability...  click here to read more: Retirement Topics - Exceptions to Tax on Early Distributions <a rel="nofollow" target="_blank" href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...>