IRA to ROTH Conversion without a 1099R

Forum|Forum|6 years ago
March 3, 2020
5 replies
84 views

I had a traditional IRA at a large bank that contained an annuity policy. I converted it to a ROTH mid year 2019. The insurance company that held the policy sent me a letter telling me the value of the conversion that would be reported to the IRS. Neither the bank holding the IRA (now ROTH) account with the policy, nor the insurance company would send me a 1099R for the conversion. They said the policy was kept intact (not liquidated) and therefore would not generate a 1099R. I owe taxes on this conversion, but I can find a way to get it into TurboTax (CD version). Whenever I try to open a form 8606 to report the conversion, TurboTax insists on linking it to a 1099R, which I do not have. I only have a letter telling me the amount "reported to the IRS." Can anyone help?

Thanks............ Tom A

Best answer by dmertz

"They said the policy was kept intact (not liquidated) and therefore would not generate a 1099R."

Perhaps they believe that the transfer was a trustee-to-trustee transfer was from one traditional IRA to another traditional IRA and is therefore non-reportable. However, moving a traditional IRA to a Roth IRA always requires reporting on a Form 1099-R. By law, any Roth conversion is a reportable distribution from the traditional IRA.

You should follow the instructions in IRS Tax Topic #154. If the traditional IRA custodian still refuses to provide the required Form 1099-R, you'll need to enter a substitute Form 1099-R by marking the "I need to prepare a substitute From 1099-R" box on the Tell Us Which 1099-R You Have page.

https://www.irs.gov/taxtopics/tc154

[Edit: Certainly a deferred IRA annuity can be converted to Roth. It's less clear how conversion of an immediate annuity would be converted due to the difficulty in determining the taxable value of the annuity.]

macuser_22

Alumni - Champ

@dmertz - Is this even allowed?

Since a Traditional IRA is before tax money and a Roth is after-tax money I don't know how it would even be possible to convert an annuity held in a Traditional IRA to a Roth at all. I paged user @dmertz who might know.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

D

dmertzAnswer

Level 15