Rollover Question

[geekgirldany]

Customer had a SEP IRA. He rolled it over into a Traditional IRA, diversified ira. He has not received a 1099R, should he not receive one showing the amount taken out as a rollover?

[Possi]

Late coming?

A lot of my clients are waiting to come in because of late 1099's. Maybe your client will get one late.
I believe one should have been issued.

[Koss]

Rollover

A SEP IRA is, by definition, a Traditional IRA. It is one type of Traditional IRA.

Did you client move the account from one financial institution to another?

If he did not, then it may not be a true rollover. He may have kept the assets in the same IRA account, at the same broker, but merely switched from one investment product to another (e.g., from one family of mutual funds to another, or from mutual funds to individual stocks, or vice versa).

If he did move it from one broker to another, was it a hands-free rollover? Did the first institution issue a check to your client, or did they issue a check to the second financial institution?

A hands-free rollover is also known as a trustee-to-trustee transfer. These transactions may not generate reporting documents, because the taxpayer was not directly involved in the transaction.

BMK

[geekgirldany]

Thank you so much. I will ask him those questions. It was moved to a different financial inst. I am unsure if he got a check or it was a trustee to trustee rollover. I will find out.
Thank you again.

[FEDUKE404]

Expect 1099-R

... I will ask him those questions. It was moved to a different financial inst. I am unsure if he got a check or it was a trustee to trustee rollover. I will find out...

If it was a true rollover (and not just reallocation within an existing account) you can bet a Form 1099-R is forthcoming.

I've seen plenty of those (the large numbers scare the clients!) even for the "same" financial institution and no cash exchanged hands.

FE

[geekgirldany]

I asked him tonight about. He said that a check was written directly to the place that has the Traditional IRA. I found this tonight online:

Will I receive a Form 1099-R for a direct rollover or for a trustee-to-trustee transfer of tax-qualifiedassets?
A direct rollover, which is the direct payment of an eligible rollover distribution to a traditional IRA or other eligible tax-qualified plan, must be reported on Form 1099-R. A trustee-to-trustee transfer involving no payment or distribution to the participant, which includes a trustee-to-trustee transfer from one IRA to another IRA or from one 403(b) plan to another 403(b) plan, is generally not reported on Form 1099-R.