Reporting Requirements
Quick question –
Husband passes away and maintains a IRA account with appx $100k in overall value, made up in cash and securities…The spouse is the beneficiary and has those monies rolled over/transferred to her existing IRA account…
Does this movement of assets require any type of reporting, either on his final 1099-R (as a death distribution) or her 5498 (as a rollover contribution) ?
Thank you –
Gregg Guiol
Permalink Submitted by Alan Spross on Wed, 2009-08-26 18:51
With respect to movement of funds, if they are moved by direct trustee transfer, no reporting is required. If done by indirect rollover, then a 1099R and 5498 should be generated using beneficiary’s SSN.
However, a 5498 is always required for the year of death to reflect the decedent’s interest and for RMD purposes, and one for each beneficiary interest. The exception would be for a sole spousal beneficiary who actually assumes ownership of the decedent’s IRA account. These requirements are fairly detailed and referenced in IRS Notices 2002-27 and 2003-3 with respect to the RMD reporting portion.