topic Re: 1099 div with ira in Retirement tax questions

1099 div with ira

frlejo8306 — Sat, 13 Feb 2021 18:30:36 GMT

hi, I am drawing social security, & I have traditional and Roth IRA's I am not drawing any money out. my broker is preparing 1099's div & int's for them. do i need to report these as income, even tho i am not drawing anything out of the IRA's? thx

Re: 1099 div with ira

Bsch4477 — Sat, 13 Feb 2021 18:37:22 GMT

If the income was generated within the retirement accounts and you had no withdrawals you would not have to report that information.

Re: 1099 div with ira

dmertz — Sat, 13 Feb 2021 19:12:18 GMT

If your investments are in retirement accounts, the broker should not be preparing any Forms 1099-DIV and 1099-INT related to those investments. If you receive any of these, ask the broker for an explanation. If the broker files them indicating you as the recipient, failing to include these on the tax return would result in the IRS issuing to you a notice of underreported income.

Re: 1099 div with ira

frlejo8306 — Mon, 15 Feb 2021 22:55:19 GMT

as it turns out, the income was generated in any IRA. it is in a joint account with me & my wife, so it is taxable

Re: 1099 div with ira

AmyC — Mon, 15 Feb 2021 23:12:18 GMT

I am not sure I completely understand but agree that the end result is a joint account will produce taxable forms.

You are not allowed to have a joint IRA account.
If the money is coming from a joint account, it will not be retirement related and you do need to report the dividends and interest. A brokerage will not create forms you don't need, normally.

Re: 1099 div with ira

dmertz — Mon, 15 Feb 2021 23:15:40 GMT

These forms ended up having nothing to do with an IRA but were instead related to activity in a non-retirement brokerage account.

Re: 1099 div with ira

Questionasker — Wed, 18 May 2022 20:29:55 GMT

Would it be correct to understand that a 1099 or 1099-DIV should not be issued by a corporation if the distribution is being made in a Roth IRA account, and therefore should have no tax consequences? The reason I ask is that a corporation is asking for a W-9 related to a distribution they will make into my self directed Roth IRA account. I guess they can require the W-9 but don't think they should issue any 1099 or 1099-DIV to that account at year end. True?

Re: 1099 div with ira

Critter-3 — Wed, 18 May 2022 21:05:36 GMT

They can require you to fill in the W-9 so they know if a 1099 needs to be issued ... READ the form to fill it in correctly ... https://www.irs.gov/forms-pubs/about-form-w-9

Re: 1099 div with ira

Questionasker — Wed, 18 May 2022 21:24:13 GMT

Thank you for that fast answer pointing that out!!

Re: 1099 div with ira

Questionasker — Thu, 19 May 2022 01:33:47 GMT

Regarding Line 4 on the W-9, it is not 100% clear if the last sentence in that box ("Applies to accounts maintained outside the U.S.") is referring ONLY to the line above it ("Exemption from FATCA reporting code (if any)"), or, if that refers to BOTH items above it in that box for line 4 Exemptions. ("Exempt payee code (if any)" and "Exemption from FATCA reporting code (if any)")

One reason I began to question that is in one example of a self directed IRA custodian instructing how to fill out a W-9 they said leave line 4 blank, but another IRA custodian's example said to enter 1 for the exempt payee code. (This is for a domestic account.)

I guess it couldn't hurt to enter 1 for Exempt payee code and also enter A for Exemption from FATCA reporting code, as a Youtube presentation by a tax attorney explained. (even though this is domestic, not maintained outside the US)