TRANSFER OF FUNDS - one IRA to another

[Edward]

I'm aware that when one moves a 401(k) into an IRA (trustee to trustee) a 1099-R is required showing the rollover - code G. However, if there is a subsequent "IRA TO IRA &

TRUSTEE TO TRUSTEE transfer, there is no need for the issuance of a 1099-R. Have client who elected to move his total IRA to another IRA custodian but the movement was via an

investment firm. Allstate Life Insur prepared a check in taxpayers name and sent it to the investment firm, who in turn sent the check to Riversource Life Insur. Taxpayer did not get possession of the check at any time. Allstate Life Insur then issued a 1099-R

with the entire amount shown as GROSS & TAXABLE with a distribution code of 7 assigned.

I called them and they advised that the reason for such was because this was not a TRUSTEE TO TRUSTEE type transaction. I suspect they are partially correct? However, how do I mdoify the 1099-R worksheet to reflect that the funds did go into another IRA? The

5498's support this fact? Will appreciate any help. Thanks...

[Pacun]

I'm aware that when one moves a 401(k) into an IRA (trustee to trustee) a 1099-R is required showing the rollover - code G. However, if there is a subsequent "IRA TO IRA &

TRUSTEE TO TRUSTEE transfer, there is no need for the issuance of a 1099-R. Have client who elected to move his total IRA to another IRA custodian but the movement was via an

investment firm. Allstate Life Insur prepared a check in taxpayers name and sent it to the investment firm, who in turn sent the check to Riversource Life Insur. Taxpayer did not get possession of the check at any time. Allstate Life Insur then issued a 1099-R

with the entire amount shown as GROSS & TAXABLE with a distribution code of 7 assigned.

I called them and they advised that the reason for such was because this was not a TRUSTEE TO TRUSTEE type transaction. I suspect they are partially correct? However, how do I mdoify the 1099-R worksheet to reflect that the funds did go into another IRA? The

5498's support this fact? Will appreciate any help. Thanks...

How about using a roll over transaction since the money was in his possesion (his representative's possesion) for less than 60 days?

[Randall]

How about using a roll over transaction since the money was in his possesion (his representative's possesion) for less than 60 days?

Yes and get copies of statements showing transfers (both sides), amount, dates so you'll have documentation if IRS questions it later.