NECPA in NEBRASKA Posted February 25, 2014 Report Share Posted February 25, 2014 My client rolled over her 401K into an IRA at a bank in 2012. In 2013, she took out the entire amount and rolled it into another one at a different bank. The bank told her that she would not receive a 1099R because she switched institutions. this makes no sense to me. I thought that she would get a 1099R with a code G or something. She has been to the bank twice and they keep giving her the same answer. She thinks I'm crazy, but I would rather deal with this now and not down the road. Thanks! 1 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted February 25, 2014 Report Share Posted February 25, 2014 If it was a trustee to trustee transfer, they don't have to issue a 1099-R. Necessary if a qualified plan like a 401(k) is rolled to an IRA, but not IRA to IRA. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 25, 2014 Report Share Posted February 25, 2014 Well, it SOUNDS like she did a trustee-to-trustee rollover, in which case no 1099 R is required. Relax, it's not your problem. Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted February 25, 2014 Author Report Share Posted February 25, 2014 Thank you. I see so many 1099's for trustee to trustee transfers, that I thought that they all should be reported. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 25, 2014 Report Share Posted February 25, 2014 Many banks just do them for all transfers, but it is not required. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 25, 2014 Report Share Posted February 25, 2014 I have a client who just brought hers in this evening. The original ones were incorrectly coded and they said they sent her the new ones as electronic transfers. She said she had not signed up for electronic banking and wanted them by Friday or she was going to the BBB. She came in with 1099's in hand and correctly coded. One was a rollover of a traditional and the other was a rollover of a Roth. I was really surprised that she was able to get the paper, but would not have been comfortable without it. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 25, 2014 Report Share Posted February 25, 2014 I believe that anytime money is taken from a retirement account, a 1099R is required to be created and sent. I don't think there is any exception to the rule. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted February 25, 2014 Report Share Posted February 25, 2014 Taken out is one thing, transferred is another. Technically, a trustee to trustee transfer is not a rollover. Quote Link to comment Share on other sites More sharing options...
KINGCHUCK1971 Posted February 25, 2014 Report Share Posted February 25, 2014 That's considered a transfer so no harm no foul. It's like it didn't happen because there's no taxing activity going on there. Quote Link to comment Share on other sites More sharing options...
RitaB Posted February 25, 2014 Report Share Posted February 25, 2014 . Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 25, 2014 Report Share Posted February 25, 2014 . Silence is golden. I think when you change institutions, they must give you a document with code G if it a transfer. Code 1 if they send the money to the client. In any event, ask your client to find out more about that and then document what they tell him and file. If you want to be extra careful, request a transcript from the IRS in September and amend if needed. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 25, 2014 Report Share Posted February 25, 2014 My client got the Code 1 even though she never touched the money. She came in last night with the Code G 1099's. However, they are not marked "corrected"; so may trigger a CP in the future. In any case, she would be a good person to send out for collections because I have never seen a client able to get a changed 1099 that fast; if ever. Quote Link to comment Share on other sites More sharing options...
RitaB Posted February 25, 2014 Report Share Posted February 25, 2014 Silence is golden. Yes. Yes, it is. I was at home again and couldn't delete my stupid answer. Don't know why. Quote Link to comment Share on other sites More sharing options...
PaulH Posted February 25, 2014 Report Share Posted February 25, 2014 The 1099R instructions say "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,". I'm pretty sure I've seen 1099Rs in this situation in the past, but Fidelity told a client that they are not issuing them now. 2 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 25, 2014 Report Share Posted February 25, 2014 For all those that do not think they should be issued, be ready for the CP2000's in about a year when the companies report the transactions to the IRS. From my experiences, this happens many times. The investment company does not send the 1099R to the client, but reports it to the IRS. Time will tell... 4 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 25, 2014 Report Share Posted February 25, 2014 If you want to think about the 'good' side of this, I've had a number of these and each time it was easy to satisfy the IRS, but made the client appreciate being able to turn it over to me. Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted February 25, 2014 Author Report Share Posted February 25, 2014 I just want to avoid having to deal with a CP2000 later on. I will just hope that the bank didn't send it to the IRS and not the client. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 26, 2014 Report Share Posted February 26, 2014 I just want to avoid having to deal with a CP2000 later on. I will just hope that the bank didn't send it to the IRS and not the client. I'll bet you a banana split??? 1 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 26, 2014 Report Share Posted February 26, 2014 I'll bet you a banana split???I'll bet a hot fudge sundae.........with nuts!!! (Sure could go for one right now) 1 Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted February 26, 2014 Author Report Share Posted February 26, 2014 They both sound good, but I can't have them on my diet. Quote Link to comment Share on other sites More sharing options...
B. Jani Posted February 26, 2014 Report Share Posted February 26, 2014 Did you ask client to check online account and see if 1099r is sitting there? Fidelity and many banks and brokerage are now put all tax documents online and never bother to notify the client. Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted February 26, 2014 Author Report Share Posted February 26, 2014 This is a local bank and she has been there twice and received the same answer. That she is not getting one. She said that they weren't especially nice, because she switched. Quote Link to comment Share on other sites More sharing options...
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