Interaction between 2017 IRA RMD and R/O in Jan, 2017 to another firm's IRA

[BeepopM]

2017 IRA RMD=10,802 based on 12-16 IRA FMV=176,547.  Entire IRA transferred/R/O in Jan, 2017 to IRA at another firm. 10,802 not paid by transferor (initial) IRA firm since entire fund was sent to transferee (new firm) immediately in Jan, 2017. 1.Which firm should have paid 10,802?  2. Should I have gotten 2017 1099-R for 10,802 from either firm? 3. I did not get 1099-R (R/O) from Transferor or Transferee firm. Should I have?

[dmertz · Accepted solution]

A trustee-to-trustee transfer of a traditional IRA to another traditional IRA is not a reportable transaction; you should not receive a Form 1099-R for such a transfer.  It is neither a distribution nor a rollover.

It's your responsibility to ensure that you satisfy an RMD from an IRA, not the responsibility of any particular IRA custodian.  The RMD can be satisfied either before or after the trustee-to-trustee transfer.

If you have not yet satisfied your 2017 RMD, if this is your first RMD year because you reached age 70½ in2017, you have until April 1 2018 to take the RMD to avoid it being late.  Otherwise, you have a late RMD to make up and request on a 2017 Form 5329 a waiver of the excess accumulation penalty.

[BeepopM]

Let me make sure I understand your answer.  We have 4 IRAs at 4 different financial institutions.  We wanted to consolidate them in one new location (as retirees, we have different needs than when we were younger).  All four sent the corpus of its IRA to the new single institution.  I did not get any "Rollover" 1099-R (marked "G") from any of the 4.  My understanding of your response related to the Rollovers is that no 1099-R is required for each of the 4 institutions.  My question is 1) am I correct above and 2) The R/Os for which I got a 1099-R "G" require that the R/O amount be included on our Tx Rt as non-taxable.  Do we have to calculate the amount "R/O" from these 4 institutions that did NOT send a 1099-R "G" and include it on our Tx Rt as if one were sent?  I know the 4 institutions do not have to create 1099-R "G" but do we have to address it someway on our return?  Thanks.

[dmertz]

1) Correct.
2) Nothing is reportable regarding the 4 IRAs that were moved by trustee-to-trustee transfer.  These were not rollovers, they were simply transfers, similar to changing investments within your IRA since all IRA accounts are treated as one large IRA for tax purposes.

The code G Forms 1099-R are reporting direct rollovers from qualified retirement plans like a 401(k) and must be reported.

[BeepopM]

You are so clear with your answers.  I suspect Trump is going to fire the head of the IRS (he fires everyone else).  You might think about applying.