Ira 1099-r / Code G

[Black Bart]

Yes, it's a direct transfer rollover and no tax due alright, but I always put them on line 15a, the program prints "ROLLOVER" to the right, and zero on line 15b (nothing taxable).

The problem: Two banks in the last two days -- who did not furnish them to clients -- have told me that, since the money was simply directly transferred from bank to bank, it wasn't considered a distribution and THEY WERE NOT REQUIRED to make a 1099-R in such cases (this from a vice-president).

When the first bank told me that yesterday -- said they had NEVER done it -- I thought they were simply unknowing dopes. Now the second bank tells me the same thing five minutes ago.

Anybody ever heard of such? Or am I the unknowing dope myself? It doesn't make any sense to me all transactions in and out of an IRA would not have to be reported.

[Snaggletooth]

Don't Know

...what the requirements are for custodians of IRAs, but I can definitely say that the opinion of these two bankers are overwhelmingly in the minority. Most of us see several of these rollovers with G code on 1099-Rs every year.

If it were me, I would not try to force anything on the tax return, because if you report a 1099-R, your software is probably going to require a FEIN #. If the item is reported, or if it's not, there is no tax effect on the taxpayer.

As I stated, I don't know, but if I had to gamble on it, I would say these bankers are wrong.

[ChEAr$]

That was correct

trustee to trustee direct does not require a 1099R with"g" coded.

[Jesse]

I'm a dope like you Bart, I thought it needed to be reported on a 1099R too!

[Black Bart]

Code G

trustee to trustee direct does not require a 1099R with"g" coded.

Well, the thing is, I (like Snag) have seens lots 'n' lots of them over the years -- so I know they exist. If they aren't required, then do you know what the meaning of this is from the back of the 1099 -- G- "Direct rollover of a distribution to a...IRA" ? If they aren't required to use it on a bank-to-bank direct transfer, then when do they use it?

[David1980]

See "Transfers" top right of Page 4 of the 1099-R instructions.

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, transfers from one section 403(b) plan to another, or for the purchase of permissive service credit under section 403(b)(13) or 457(e)(17).

On the other hand, if it's from one type of plan to a different type of plan (for example a 401k to an IRA) then you would report it. So probably what you see most of the time with a code G is just that, a direct rollover 401k or 403b to IRA.

[Jesse]

See "Transfers" top right of Page 4 of the 1099-R instructions.



On the other hand, if it's from one type of plan to a different type of plan (for example a 401k to an IRA) then you would report it. So probably what you see most of the time with a code G is just that, a direct rollover 401k or 403b to IRA.

Okay, bop me in the head like I could've had a V-8! That clears it up for me.

[Black Bart]

Shut mah mouth and thanx.

See "Transfers" top right of Page 4 of the 1099-R instructions.

Quote:
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, transfers from one section 403(b) plan to another, or for the purchase of permissive service credit under section 403(b)(13) or 457(e)(17).

On the other hand, if it's from one type of plan to a different type of plan (for example a 401k to an IRA) then you would report it. So probably what you see most of the time with a code G is just that, a direct rollover 401k or 403b to IRA.

Mystery solved and learned somethin' new again (gettin' to be ever' day now) -- it's just amazin' how your colleagues can tweak and fine-tune your information storehouse for you, ain't it (I've learned so much off this board that I've got a CPA wonderin' how come I know so much stuff)?

David/Harlan: Nobody can ever accuse y'all of being "unknowing," much less dopes, but it's plumb embarrassin' postin' around folks who are right so often!

[Snaggletooth]

Ditto Here

Danged smart-alecks!! Seems every time I post and run my mouth long enough, I will eventually reveal my ignorance, and then some wise owl will open the window and light will shine in.

A history teacher once taught me "Aristotle was the last human who knew everything." He never met Dave-O and Harlan...

[Gene V]

I remember reading this from the old QF book;
I dug out the old book and here is what it said:
Lines 15a and 15b instruction
Direct transfers (trustee to trustee) do not need to be reported. Form 1099-R should
Not be received for a direct transfer.

[Larmil]

Danged smart-alecks!! Seems every time I post and run my mouth long enough, I will eventually reveal my ignorance, and then some wise owl will open the window and light will shine in.

A history teacher once taught me "Aristotle was the last human who knew everything." He never met Dave-O and Harlan...

Somebody once told me that a day in which you learn nothing is a day wasted.

[Black Bart]

Drat!

Now I've got to call that bank clerk back (I sort of know her), apologize, and 'fess up that I didn't know what I was talkin' about.

I hope she doesn't put me through to her boss again -- that's the one who told me they weren't required to issue 'em and I (a little put out that such dignified institutions were wallowing in ignorance) informed her -- a tad haughtily -- that "FYI, you are required to issue them."

Crow is gettin' to be a staple of my diet. Say Jess & Snag; would y'all like a helpin' of it?

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"Conscience! What a thing! If you believe you got a conscience, it'll pester you to death." --- Humphrey Bogart: Treasure of the Sierra Madre