Are IRA administrative fees a taxable event?
Last year my husband and I transferred two IRAs from one bank to another and transaction fees of $25 each were deducted from the balances. We each received Form1099-Rs for the amount of the transaction fees. I worked as an IRA specialist for over 20 years and we never considered administrative fees as taxable events to the client. Do you have documentation to support whether or not administrative fees are taxable to the client?
Permalink Submitted by Alan Spross on Fri, 2012-02-17 19:40
The bank should have just deducted the exit fees from the balance with no 1099R being issued. Without posting the name, is this a small bank that might not know what they are doing?
Permalink Submitted by Patricia Long on Fri, 2012-02-17 19:50
Yes, this is a community bank. Do you have IRS references to support not issuing the 1099-R? Thanks for your help.
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