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aforte1422
New Member

Wife closed her Traditional IRA in 2018. Are IRA funds considered taxable income and what documentation should we have received from our custodian?

We believe we paid taxes on the closing of the Traditional IRA but have no documentation.

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Rachel_W
Level 4

Wife closed her Traditional IRA in 2018. Are IRA funds considered taxable income and what documentation should we have received from our custodian?

Your wife should receive a Form 1099-R reporting the distribution from her IRA.  This will need to be reported on your Tax Return.  If there were taxes withheld from the distribution, they will be reported on the Form 1099-R and included with your tax "payments" for the year on your Form 1040.

Financial institutions have until January 31st to send you Form 1099-R, so you definitely should have received your form by now.  In most cases, you can access your Form 1099-R through the website of the Financial Institution, typically in a "tax info" or "year-end statements" link.  If you are unable to access it through the website, try contacting the Financial Institution directly.

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1 Reply
Rachel_W
Level 4

Wife closed her Traditional IRA in 2018. Are IRA funds considered taxable income and what documentation should we have received from our custodian?

Your wife should receive a Form 1099-R reporting the distribution from her IRA.  This will need to be reported on your Tax Return.  If there were taxes withheld from the distribution, they will be reported on the Form 1099-R and included with your tax "payments" for the year on your Form 1040.

Financial institutions have until January 31st to send you Form 1099-R, so you definitely should have received your form by now.  In most cases, you can access your Form 1099-R through the website of the Financial Institution, typically in a "tax info" or "year-end statements" link.  If you are unable to access it through the website, try contacting the Financial Institution directly.

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