Issuing of a 1099

Submitted by Brian Smith on Wed, 2023-03-29 15:17

Good morning. Client’s tax preparer is requesting a 1099 for an IRA to IRA transfer that was done in 2022. Spoke with Custodian of the IRA the IRA funds were transferred from and they said they do not issue a 1099 if its an IRA to IRA transfer. Need advice on this one.

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Permalink Submitted by David Mertz on Wed, 2023-03-29 16:24

Trustee-to-trustee transfers of one IRA to another of the same type, either traditional or Roth, are neither a distribution nor a rollover and are nonreportable (which is a good thing because actual distributions and rollovers are subject to certain limitations which are best avoided by doing a trustee-to-trustee transfer).

Permalink Submitted by Brian Smith on Wed, 2023-03-29 19:44

Thank you for your response, I appreciate it! Is there something to reference with the irs.gov or the code that I could provide to accountant since I’m getting pushback on this?

Permalink Submitted by Alan - IRA critic on Wed, 2023-03-29 20:01

The following is copied from p 6 of the IRS 1099R Inst:

“Transfers – Generally, do not report a transfer between trustees or issuers that involves no payment or distribution of funds to the participant, including a trustee-to-trustee transfer from one IRA to another IRA, valid transfers from one section 403(b) plan in accordance with paragraphs 1 through 3 of Regulations section 1.403(b)-10(b), or for the purchase of permissive service credit under section 403(b)(13) or section 457(e)(17) in accordance with paragraph 4 of Regulations section 1.403(b)-10(b) and Regulations section 1.457-10(b) (8). However, you must report: • Recharacterized IRA contributions; • Roth IRA conversions; • Direct rollovers from qualified plans, section 403(b) plans, or governmental section 457(b) plans, including any direct rollovers from such plans that are IRRs or are qualified rollover contributions described in section 408A(e); and • Direct payments from IRAs to accepting employer plans. “