"mypet" <mypetandyours[at]hotmail.com> writes:

- quote -

[snip]

- quote -

The 1099-R *is* correct. Bank #1 doesn't know what she
planned to do with the money.

- quote -

On box (a) of the IRA line, you put $6000. On box (b) of
the IRA line you put -$0-. Next to the IRA line you write
"ROLLOVER". If the IRS ever bugs her about it, she shows
them the cancelled check and the deposit statement. This is
all in the 1040/1040A instructions as well as in Pub 590.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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mypet wrote:

- quote -

The bank spoke true, according to the facts that they know.

But simply report the 6m$ on the line a. and on the line b
(is it 15a and b?) report a zero.

ChEAr$$$,
Harlan Lunsford, EA n LA
11 Apr 2005
4 days and counting...... down.....\

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mypetandyours[at]hotmail.com (mypet) wrote:

- quote -

If filing on paper, simply enter the $6000 as an IRA
distribution (line 15a on Form 1040), Note "Rollover" just
to the right of it, and make no entry in the taxable income
column. If your friend maintains her records of the deposit
to another qualified Trustee, she will have no problem
proving her case if questions are raised.

However, in the future she should definitely arrange for a
"Trustee to Trustee" direct transfer, which avoids this kind
of problem.

Incidentally, I'm surprised the first bank didn't withhold
10% under current rules.

If using a computer program, when you enter the 1099-R,
there should be an option to record this as an exception
further down, by showing it as a "Rollover" and entering the
same amount as the distribution.

Bill

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"mypet" <mypetandyours[at]hotmail.com> wrote:

- quote -

We read the 1040 line 15 instructions for reporting a
rollover.

--
Phil Marti
Clarksburg, MD

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A lady I know got a 1099R that has the amount she rolled
over into a different IRA as totally taxable.

She says that she got $6000.00 out of one IRA to invest in
another by getting the bank holding the IRA to put the money
in her checking account and she then wrote the check on the
next day to deposit in the other IRA.

When I told her that Bank #1 had reported the distribution
as fully taxable she contacted them and they told her that
because they had deposited the money in her bank account
that it WAS fully taxable and the 1099R is correct.

She has all papers where the money was deposited with Bank
#2. How do we prepare her return so that the money is
treated as a rollover and not taxed?

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