Roth IRA Custodian Transfer
If someone is over 59.5, and has satisfied the 5 year rule, then moves their Roth from one custodian to another, what document is best to prove the original Roth met the 5 year requirement? Is it the first 5498?
If someone is over 59.5, and has satisfied the 5 year rule, then moves their Roth from one custodian to another, what document is best to prove the original Roth met the 5 year requirement? Is it the first 5498?
Permalink Submitted by Alan - IRA critic on Sun, 2021-01-10 16:46
The first 5498 is good, but isn’t fully conclusive because you would still have it even if you recharacterized or removed that contribution as an excess contribution. The IRS rarely asks for this info, particularly after 59.5. Moreover, if you are just doing a transfer (or 60 day rollover) to another Roth, there is no taxable distribution to be reported.