topic Direct Transfer Roth IRA Conversion in Retirement tax questions

Direct Transfer Roth IRA Conversion

MrEus1 — Mon, 09 Mar 2020 04:22:27 GMT

I did a direct transfer for my traditional IRA in to a Roth IRA from one trustee to another. When I contacted both banks, they both said they don’t need to issue me a 1099-r. Shouldn’t I receive the form showing the conversion amount that I should be taxed on? If so, which bank is supposed to provide it, the sending or receiving bank of the transfer?

Re: Direct Transfer Roth IRA Conversion

VolvoGirl — Mon, 09 Mar 2020 04:26:05 GMT

Your Traditional IRA Account should give you a 1099R probably with a G for the code. Did they take taxes out of the transfer? Call them again and ask someone else.

Re: Direct Transfer Roth IRA Conversion

MrEus1 — Mon, 09 Mar 2020 04:36:58 GMT

@VolvoGirl Thanks for the response. I don’t think they took any taxes because I marked the form for them not to because I was planning to just pay it on my taxes. The amount transferred was $25 less but I think that was for some random fees for the transfer. I’ll try to call again and see if someone else is more helpful.

Re: Direct Transfer Roth IRA Conversion

dmertz — Mon, 09 Mar 2020 13:32:30 GMT

Apparently the traditional IRA custodian thought that you were trustee-to-trustee transferring to another traditional IRA. However, what you did is a Roth conversion, not a trustee-to-trustee transfer between IRAs of the same type. It's not clear whether the Roth IRA custodian thought you were trustee-to-trustee transferring from another Roth IRA or if they will be showing on Form 5498 receipt of a Roth conversion contribution.

Had this all been done properly, the traditional IRA custodian would have issued a code 1 (if you were under age 59½) or code 7 (over age 59½) Form 1099-R. Unless you can get the traditional IRA custodian to correct their records as to the type of transaction and issue a Form 1099-R, you'll need to submit a substitute Form 1099-R with the amount in boxes 1 and 2a, box 2b taxable amount not determined marked, code 1 or code 7 in box 7 depending on your age and the IRA/SEP/SIMPLE box marked.