IRA Transfer

Forum|Forum|3 years ago
February 19, 2023
2 replies
18 views

I transferred my IRA from one bank to another. I received a 1099r from the first bank showing a total distribution and a 1099r from the second bank showing my RMD. How do I report this? If I include both 1099s on my return it will double count the RMD. I don't believe I should have received a 1099 from the first bank.

Not A Product Question

user17750693608

Level 8

Does the 1099 from the first bank have code G? This indicates a rollover. You only had one RMD and that is from the second bank. Enter the first 1099 exactly as it appears. It will not be taxable.

If there is no code G, you can still indicate it was a rollover. Go through the interview and you will at some point be asked what you did with the money. Show that you rolled it over to another bank.

Kelly9288Author

Level 2

It shows a code 7. If I add them together it will double count the RMD. If I claim it was a rollover, I will have to pay a penalty for excess contributions because I didn't take my RMD first. It was a transfer and therefore I don't believe I should have received a 1099. Is that correct?

user17750693608

Level 8

Yes, if there was a distribution, you do receive a 1099. When you say you transferred, do you mean that you physically took the money into your own hands and put it into another bank within 60 days? If so, it is a rollover. If it was a trustee to trustee transfer, it would have code G. If this is the case, ask for a corrected 1099.

A rollover is not a contribution.

DanaB27

Level 15

Yes, if you received a distribution and returned it within 60 days you get Form 1099-R. As leeloo mentions, if the code in box 7 doesn't indicate a direct rollover then you can enter the rollover during the interview:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R” and enter your 1099-R for the rollover
Continue until "How much of the $XXXXX was a RMD?" screen and select "None of this withdrawal was a RMD".
Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
Continue answering the questions.