Taxability for Traditional IRA amount transferred from one bank to another bank's Traditional IRA account

[taxmen2021]

Hi, If I transferred rom bank "A" to bank " B" all the funds from my traditional IRA at bank " A" to a traditional IRA at bank " B", should I reflect somehow on my tax return? The bank " B" said because it was a Direct transfer between a banks, I do not need to record on my taxes. Is it correct? Also I just confirmed with bank " A" that it was a Direct transfer and they will not issue any tax forms to me for 2025.

Thank you.

[DoninGA · Accepted solution]

Direct transfers of an IRA account from one bank to another bank are not reported on a tax return.  It is referring to a trustee-to-trustee transfer.

[taxmen2021]

Thank you very much. That what I have been told by the bank

[VolvoGirl]

But sometimes the bank will give you a 1099R for a direct transfer.   It will have a Code G on it to indicate a non taxable direct transfer.  If you get a 1099R you have to enter it.   It will show up on your 1040 with $0 taxable and the word ROLLOVER written by it.

[dmertz]

A trustee-to-trustee transfer of an IRA is never reportable on a Form 1099-R.  If the originating IRA custodian reports such a transfer on Form 1099-R, it has done so in error and the Form 1099-R would need to be corrected to show that no distribution actually occurred.

A code-G Form 1099-R with the IRA/SEP/SIMPLE box marked for an actual distribution from a traditional IRA is only used to report a direct rollover to an employer plan like a 401(k).  Code G is never to be used for moving one IRA to another IRA.