IRA - Dividends Interest

[geekgirldany]

It is my understanding that earnings (dividends/interest) on a IRA are tax free until withdrawn.

I have new clients that have two IRAs. But they still get a 1099-Int/Div from the same bank and they say it is for the IRAs.

I looked at the 1099Rs, they have different account numbers then the one joint 1099-int/div form. Not sure if that matters. They are thinking they are paying tax twice. When they take out their RMD from the IRAs and then the 1099-int/div they are getting. I am thinking it maybe another account but they said for sure all they had are IRA accounts at this one bank.

Is there some IRA accounts that you have to report earnings on?

[FEDUKE404]

Simple answer

Your clients are confused.

I've never seen an IRA account issue a Form 1099-INT/DIV.

FE

[AZ-Tax]

Take a look at the statements from the acct....

There is a pretty good chance the "IRA" does not appear any where in the account title for I too never saw a qualified acct (IRA) ever issue a 1099-div.

[geekgirldany]

Thank you all for posting.

So in other words there is another account at the bank they earning on?

I've never seen it either but.... never know. I'll check again with the clients. See if I can get some more info on the account. The 1099-Int/Div has a detailed attachment that shows the different companies they received income from.

[AZ-Tax]

Usually when a client is confused.....

I request they scan, fax or bring me in the statements so I can see for myself.