On Feb 20, 9:28*pm, steve-o <igt...[at]optonline.net> wrote:
- quote -

One last thing. When I rolled over my ROTH last year the only way I
could avoid triggering
a 1099-R was by having the bank I had the money in do a "Custodial
Transfer". The banker at the recipient bank told me that and the bank
holding the money confirmed it. The bank I withdrew the money from
charged me a 20.00 fee for this service. I've heard that some banks
don't charge
a fee but it takes a week of 2 for the initial custodian to send it to
the recieving bank. I don't know if youcan do this with traditional
IRA's.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 20, 12:27*am, kam...[at]panix.com (Arthur Kamlet) wrote:
- quote -

I went through this drill with a 401k to 401k and my 401k to IRA.
In both cases I filled out a form requesting a "DIRECT ROLLOVER" to
the bank issueing the check. It was always an option for me on the
distribution
request. I always got a check made out to Fidelity FBO <ME> and the
1099's
always showed the correct code (g). Don't know if you had that option
but if
you didn't request a direct rollover I don't think you'll get the code
(g) from the
issueing bank/security house.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 19, 9:27*pm, kam...[at]panix.com (Arthur Kamlet) wrote:
- quote -

First or all, whether they coded it as a 1 or a 2,
that does not change the way in which it should be
reported on Form 1040. And it should not change
the way in which the OP should handle it using
TurboTax. I would not request a corrected 1099-R
unless it made a difference.

Secondly, I don't believe that any of the code 2
exceptions apply, as they are explained in the
instructions for Form 1099-R (pg 11).


- quote -

I will grant you that I was being overly cautious,
arguably unduly cautious, by including the bank it
that warning.

But TurboTax is a tax preparation program, and as
I noted, the 10% penalty is reported on Form 1040.

TT does all sorts of things automatically on behalf
of the taxpayer. And as a TT user myself, I know
how confusing some of its prompts can be, resulting
in unintended actions by TT. I cannot tell you how
many times I have toiled for long minutes to work
around some of TT's assumption that would cause a
reporting error.

I am sure that TT is not unique in that regard.
Users of tax preparation programs should always
be on the lookout for errors introduced by the
tax preparation program.

(Of course, human tax preparers make their own
share of mistakes. But at least you can have a
conversation with them and come to a common
understanding.)

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <ff23b4b3-2995-4670-93d7-e20667369a04[at]w1g2000prm.googlegroups.com> ,
joeu2004 <joeu2004[at]hotmail.com> wrote:
- quote -

If they made the check payable to schwab they have reasonable cause
to mark this as a exception to the early distribution no known
exception situation. They should have coded it a 2.

- quote -


Neither banks nor TT have any authority to assess any tax at all.



You report what happened and if you then owe tax, you state it on
your return.

And if you do not have taxable income so no tax, you report that
as well.

--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 19, 1:54*pm, in Technicolor® <ciner...[at]verizon.net> wrote:
- quote -

No. There was no error. From the bank's perspective,
you took a distribution before the age of 59 1/2 (I
presume). Even though the check is made payable to
Schwab, the bank has no way of knowing that you did
indeed deposit the funds into a qualified IRA within
60 days.


- quote -

I have forgotten how this is handled in TurboTax
per se.

In general, the rolled over distribution is recorded
on line 15a (2008 Form 1040), and zero is entered in
line 15b, assuming the entire distribution was rolled
over.

I am pretty sure that TT walks you through this. But
if it is not obvious how, you should contact TT.
(Do they have an online chat service?)

Sanity check: Since this distribution was
presumably before age 59 1/2, you should ensure
that neither the bank nor TT assessed the 10%
early-withdrawal penalty (line 59 of 2008 Form
1040 and Form 5329).

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"in Technicolor®" <cinerama[at]verizon.net> wrote in message
news:8Sjnl.437$Ez6.174[at]nwrddc02.gnilink.net...
- quote -

correct. If they had sent/wired the money to Schwab, it would be different.

Not to worry though, there's a line on your 1040 that shows that you rolled
it over into another IRA yourself. The transaction is reportable but not
taxable

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

cinerama[at]verizon.net (in*Technicolor®) posted:

- quote -

I can't speak for Turbo Tax, since I've never used it, but when one
enters a 1099R in TaxWise, all you do is scroll down and you'll find
some options for disposition or clarification. One of them is "Amount
rolled over into another account."

If you simply enter the amount indicated on the 1099R in that space, the
system recognizes there is no tax due.

Errors in coding are common. You can certainly request that Banc of
America Securities arrange for National Financial Services to produce a
"Corrrected 1099R" which properly reflects the rollover. But the most
important thing is correctly entering the facts on your tax return.

Bill

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Last year my wife rolled over her IRA from Banc of America to an IRA at
Chas. Schwab and Co. The made the check out to Schwab FBO (insert wife's
name) and was deposited it the Schwab account in short order.

We received our 1099-R from National Financial Services, LLC for the money
that was removed from Banc of America and they have put a 1 in Box 7 making
it appear that this was a cash out as oppose to roll over.
Do we need to get them to send us a corrected form or is there another way
in Turbo Tax to prevent this from appearing as taxable income since no
income was realized from the roll over?

Thanks in advance.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >