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meers-4
New Member

I have just funded a Roth IRA account but have not purchased any stocks or bonds or received a 1099. Do I need to have a 1099 even if I haven't invested in anything yet?

 
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MargaretL
Employee Tax Expert

I have just funded a Roth IRA account but have not purchased any stocks or bonds or received a 1099. Do I need to have a 1099 even if I haven't invested in anything yet?

No, you don't need nor will you receive any 1099 forms for funding a Roth IRA. You may want to report your Roth contributions on your tax return to see if you qualify for the Retirement Savings Contributions Credit, or to have TurboTax program keep track of your basis, but the actual contribution will not give you a deduction.

 In the future, if you invest in stocks/bonds within your IRA account, you don't have to report it either. You don’t have to report your “inside-IRA” trades when you file your taxes. You can trade stocks inside your Individual Retirement Account, whether you have a traditional IRA or a Roth IRA. You will probably still have to pay brokerage fees and commissions, but the stock trade inside your IRA will not result in a taxable event. All investment activity that occurs within your IRA is treated the same, regardless of the form it takes. Dividends, interest and capital gains are all allowed to grow without creating a current tax obligation or additional reporting.

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2 Replies
MargaretL
Employee Tax Expert

I have just funded a Roth IRA account but have not purchased any stocks or bonds or received a 1099. Do I need to have a 1099 even if I haven't invested in anything yet?

No, you don't need nor will you receive any 1099 forms for funding a Roth IRA. You may want to report your Roth contributions on your tax return to see if you qualify for the Retirement Savings Contributions Credit, or to have TurboTax program keep track of your basis, but the actual contribution will not give you a deduction.

 In the future, if you invest in stocks/bonds within your IRA account, you don't have to report it either. You don’t have to report your “inside-IRA” trades when you file your taxes. You can trade stocks inside your Individual Retirement Account, whether you have a traditional IRA or a Roth IRA. You will probably still have to pay brokerage fees and commissions, but the stock trade inside your IRA will not result in a taxable event. All investment activity that occurs within your IRA is treated the same, regardless of the form it takes. Dividends, interest and capital gains are all allowed to grow without creating a current tax obligation or additional reporting.

onlyinsb4747
New Member

I have just funded a Roth IRA account but have not purchased any stocks or bonds or received a 1099. Do I need to have a 1099 even if I haven't invested in anything yet?

Great reply, Margaret!  You might also note that earnings from withing an IRA are all treated the same when a withdrawal is made.  In other words, there are no differences between interest income, dividend income, long and short term capital gains, etc.  It's all taxed at ordinary income rates upon withdrawal.  At least that's my understanding.

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