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New Member
posted Jun 5, 2019 2:48:11 PM

What if i transfer fund from one Roth IRA to another do I need to file ?

0 8 3417
8 Replies
Level 10
Jun 5, 2019 2:48:12 PM

Within the same account? (I.e. sell a mutual fund position, but a stock). Or between financial institutions? Did you get a 1099-R? If so what code is in box 7?

New Member
Jun 5, 2019 2:48:14 PM

between financial institution, no I did not get a 1099-R but i do have a Form 5498 from the new bank

Level 10
Jun 5, 2019 2:48:15 PM

[Edited 3/4/18]

As described in the comments below for a IRA to IRA transfer made directly by the financial institutions, you do not need to report it and should not receive a 1099-R]. Sorry for my confusion.

The following would apply only if you transferred between a qualified plan (e.g. 401k/403(b)) to an IRA.

You should have a 1099-R from the old account provider. It might be available on their website, otherwise call them. Frequently TT can import directly from the financial institution, but not always.

The 1099-R will have a code in box 7 that indicates it was a direct rollover and as such it will not be taxed. (Plus TT will ask if how much was rolledover)

See these instructions from the IRS on what do. Basically it says call the financial institution and if you can't get it from them, call a special IRS # to get a substitute (which assumes, i think, they filed a 1099 with the IRS and just didn't give it to you).

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

Level 15
Jun 5, 2019 2:48:16 PM

If the transfer was done properly trustee-to-trustee with no distribution paid to you personally, it is neither a distribution nor a rollover and is not reportable.

Level 10
Jun 5, 2019 2:48:18 PM

@dmertz Just so that I understand this, there appears to be a subtle distinction between direct "transfers" from IRA to IRA and from qualified plan (401k) to IRA.  IRC 402(c)(1)(B) calls such transfers distribution. But the 1099-R instructions ("Direct Rollovers") define that in terms of where the money is coming from and say nothing about reporting IRA to IRA trustee transfers. Do you have better citations saying that IRA to IRA TTEE transfer is not a rollover and isn't reported on a 1099-R?

Level 15
Jun 5, 2019 2:48:19 PM

A "direct rollover" is a rollover to or from a qualified retirement plan (401(a), 401(k), 403(b), 457(b)), reported with code G on a Form 1099-R.  There is no such thing as a direct rollover between two traditional IRAs or between two Roth IRAs.  Movement of funds between like kind IRAs are nonreportable trustee-to-trustee transfers or are 60-day rollovers.  If the original custodian reports a distribution on Form 1099-R, it has been treated as a 60-day rollover, not a trustee-to-trustee transfer.

The IRS made clear in Revenue Ruling 78-406 that trustee-to-trustee transfers between IRAs are neither a distribution nor a rollover and are not reportable.

Search for 78-406 at <a rel="nofollow" target="_blank" href="http://www.legalbitstream.com:">www.legalbitstream.com:</a>  <a rel="nofollow" target="_blank" href="http://www.legalbitstream.com/irs_materials.asp?pl=i2">http://www.legalbitstream.com/irs_materials.asp?pl=i2</a>
(This reference was written back when the one-rollover-per-year rule was a one-rollover-per-three-years rule, so substitute "one year" in each place where it refers to three years.)

Level 15
Jun 5, 2019 2:48:20 PM

Also see the IRS interpretation of those rules in the 1099-R instructions page 6
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i1099r.pdf">https://www.irs.gov/pub/irs-pdf/i1099r.pdf</a>

Transfers

Generally, do not report a transfer between trustees or issuers that involves no payment or distribution of funds to the participant, including a trustee-to-trustee transfer from one IRA to another IRA, valid transfers from one section 403(b) plan in accordance with paragraphs 1 through 3 of Regulations section 1.403(b)-10(b), or for the purchase of permissive service credit under section 403(b)(13) or section 457(e)(17) in accordance with paragraph 4 of Regulations section 1.403(b)-10(b) and Regulations section 1.457-10(b)(8).

Level 10
Jun 5, 2019 2:48:22 PM

Thank you for the detailed citations. I have corrected my answer.