135941
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Transfer an IRA to another IRA. What reporting is needed

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
dmertz
Level 15

Transfer an IRA to another IRA. What reporting is needed

If your IRA was moved by trustee-to-trustee transfer, you have nothing to report.  A trustee-to-trustee transfer of an IRA is neither a distribution nor a rollover, so it is not reportable.  Only if a distribution was made to you that you subsequently rolled over within 60 days would you receive a Form 1099-R that must be entered into TurboTax and reported in the follow-up questions as having been rolled over.

View solution in original post

7 Replies
dmertz
Level 15

Transfer an IRA to another IRA. What reporting is needed

If your IRA was moved by trustee-to-trustee transfer, you have nothing to report.  A trustee-to-trustee transfer of an IRA is neither a distribution nor a rollover, so it is not reportable.  Only if a distribution was made to you that you subsequently rolled over within 60 days would you receive a Form 1099-R that must be entered into TurboTax and reported in the follow-up questions as having been rolled over.

Transfer an IRA to another IRA. What reporting is needed

You should receive a 1099-R for this transaction to be entered in the following area:

To enter pension and annuity Payments (1099-R)

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Retirement Plans and Social Security
  • On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button


Transfer an IRA to another IRA. What reporting is needed

However, you may receive 1 099-R with a Code G which would indicate a trustee to trustee transfer. If you receive one, you should report it.
dmertz
Level 15

Transfer an IRA to another IRA. What reporting is needed

No, code G is only for a direct rollover to or from a qualified retirement plan, not for a trustee-to-trustee transfer to move an IRA.  If a Form 1099-R is issued for an IRA trustee-to-trustee transfer, it is issued in error and a request should be made for a corrected code G Form 1099-R showing that no distribution took place.

(Some people mistakenly believe that their qualified retirement plan is an IRA when it's not.  The assumption here is that this is indeed a trustee-to-trustee transfer to move an IRA.  If the original account was in a qualified retirement plan and the code G Form 1099-R is correct, yes, it must be entered.)

Transfer an IRA to another IRA. What reporting is needed

I don't disagree with you, but I once made a trustee to trustee transfer from one IRA to another, received a 1099-R coded G, entered it on my return, and still got a letter from the IRS demanding that I pay tax on the income.
dmertz
Level 15

Transfer an IRA to another IRA. What reporting is needed

Some custodians are less than fully competent.  My position is that the custodians should be made to correct their errors.  Because of the the IRS's recent increase in the scrutiny of retirement-account transactions, an inappropriately issued Form 1099-R can potentially have undesirable consequences.  Since a code G Form 1099-R with the IRA/SEP/SIMPLE box marked implies a rollover to a qualified retirement plan and because basis in nondeductible traditional IRA contributions is not permitted to be rolled over to a qualified plan, it's possible that the inappropriate code G Form 1099-R indicates an impermissible rollover which didn't really happen.

Transfer an IRA to another IRA. What reporting is needed

Your insights are appreciated, thank you.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question