topic Re: 1099 Int. in Retirement tax questions

1099 Int.

dmcguire — Thu, 11 Mar 2021 22:29:16 GMT

I did a rollover of a cd/ira in Feb. 2020, I received a 1099 Int. for Jan. and Feb. 2020 . Do I report the 1099 Int. on my Turbo Tax?

Re: 1099 Int.

MinhT1 — Thu, 11 Mar 2021 22:43:34 GMT

Yes. The interest earned on the CD before the rollover is taxable. The form 1099-INT has to be reported on your tax return.

Re: 1099 Int.

VolvoGirl — Thu, 11 Mar 2021 22:46:21 GMT

If the CD was in a IRA you do not report the interest. How did you roll a CD into a IRA? Did you use the money when the CD matured to make a new IRA contribution? You get a 1099R for IRA rollovers and distributions.

Re: 1099 Int.

dmcguire — Thu, 11 Mar 2021 23:09:13 GMT

It was a IRA/CD that matured and I rollover to a new IRA/CD at another credit union. It was a complete rollover , I did not receive any money from the IRA. It was rollover on the same day, from one credit union to another credit union. That's why I did not no why I was receiving the 1099 Int. for interest for only two months of the year. That's why I was wondering if I have to report the interest on a IRA , when I did not actually receive any money from the IRA. So, I have to pay taxes on this money this year and again when I take this money out of my IRA?

Re: 1099 Int.

VolvoGirl — Thu, 11 Mar 2021 23:13:59 GMT

No you do not report interest, dividends or transactions inside a IRA. Just distributions and rollovers. I guess if they did a direct rollover you won't get a 1099R for it. @dmertz

Re: 1099 Int.

dmertz — Fri, 12 Mar 2021 00:05:12 GMT

I suspect that the interest was earned while the money was outside of an IRA during a rollover. I did such a rollover many years ago myself. That was before the IRS began treated all of ones IRAs together for the purpose of the one-rollover per 12-months rule. These days I wouldn't consider doing a distribution and rollover unless absolutely had to. I now move IRAs by trustee-to-trustee transfer. With a trustee-to-trustee transfer the funds are never treated as being outside of an IRA, so there is no potential to earn interest outside of the IRA.