topic A direct trustee-to-trustee transfer does not count again... in Retirement tax questions

I converted my traditional IRA to a Roth IRA at my bank this year. Can I transfer this to Vanguard "in-kind" this year? Does this break the one rollover per year rule?

shootingstar373 — Tue, 04 Jun 2019 19:30:50 GMT

The whole traditional IRA account was converted into a new Roth IRA account and the plan is to transfer all of it into a new Roth IRA account at Vanguard.

Also, how many 1099-R forms should I expect to get for the conversion and transfer?

Thanks!

No. Roth conversions are disregarded with respect to the...

dmertz — Tue, 04 Jun 2019 19:30:51 GMT

No. Roth conversions are disregarded with respect to the one-rollover-per-12-months rule.

You would expect to receive only one Form 1099-R reporting the conversion unless you had taxes withheld and you were under age 59½ at the time of the distribution from the traditional IRA. If you were under age 59½, the portion that was converted to Roth should appear on a code 2 Form 1099-R and the amount(s) withheld for taxes should appear on a code 1 Form 1099-R.

I overlooked that this is with Vanguard. Vanguard appare...

dmertz — Tue, 04 Jun 2019 19:30:53 GMT

I overlooked that this is with Vanguard. Vanguard apparently reports each separate fund distributed from your IRA as a separate Form 1099-R, although all of the Forms 1099-R probably appear on a single sheet.

A direct trustee-to-trustee transfer does not count again...

rjs — Tue, 04 Jun 2019 19:30:56 GMT

A direct trustee-to-trustee transfer does not count against the one-rollover-per-12-months rule. That's true whether the transfer is in-kind or you transfer cash. The one-rollover-per-12-months limitation only applies to rollovers where the money passes through your hands. You would get another 1099-R for the transfer or rollover.

@dmertz - The way I read the question, the conversion was done at the bank, not at Vanguard. The OP now wants to transfer from the Roth IRA at the bank to a Roth IRA at Vanguard. There is no distribution from Vanguard.

Ah, I see. If the transfer of the Roth IRA is trustee-to...

dmertz — Tue, 04 Jun 2019 19:31:04 GMT

Ah, I see. If the transfer of the Roth IRA is trustee-to-trustee, the transfer is *not* reportable. There should be no Form 1099-R for the movement of the money out of the old Roth IRA nor should your Form 5498 from the Vanguard IRA report a rollover contribution to the Vanguard Roth IRA.

@rjs that's correct.

shootingstar373 — Tue, 04 Jun 2019 19:31:05 GMT

@rjs that's correct.

I see. Thanks for help! I was really stumped on what impa...

shootingstar373 — Tue, 04 Jun 2019 19:31:07 GMT

I see. Thanks for help! I was really stumped on what impact the transfer would have on reporting. I guess the IRS doesn't care where it gets transferred and they'll only start to care again once I make a contribution or distribution?

Hello? I didn't see anyone address the first conversion...

VolvoGirl — Tue, 04 Jun 2019 19:31:08 GMT

Hello? I didn't see anyone address the first conversion from Traditional IRA to ROTH. That is taxable and you should get a 1099R for that one.

Oh, dmertz did in the first answer.