L1: I’m worried…Last May I created a new bucket (IRA) in my E*Trade accounts. Once setup I asked my “Relationship Manager” to transfer $350,000 into the new bucket and that I was going to setup a 72t within that account. All seemed to be going along just fine until I got the 1099 from E*Trade. Seems they called this move a distrabution rather than a transfer!?! I have documentation showing the 350 goingfrom one account to the other on the same day but I’m concerned about the IRS wondering about this money move. I have a couple other 72t’s working in other accounts and never had this issue before. Is this going to bite me in the butt or is there just some form I ned to submit with this years taxes to clarify this account makeup?
Ken2009-03-23 18:52, By: KennyMike, IP: [220.127.116.11]
L2: I’m worried…Hello Kenny:
I am having a little difficulty ansering your question — I need to know exactly what the first 7 boxes of the 1099R say.
2009-03-23 20:55, By: TheBadger, IP: [18.104.22.168]
L3: I’m worried…Hi Badger and thank you again for your support…
Box 1: 350,000Box 2a: 350,000Box 2b: no boxes checkedBox 3: nothing enteredBox 4: .00Box 5: nothing enteredBox 6: nothing enteredBox 7: 1 with an ‘X’ in the IRA/SEP Simple box
Ken2009-03-23 21:34, By: KennyMike, IP: [22.214.171.124]
L2: I’m worried…Hello Ken:
You have a problem, but its not real serious. I think E-trade should never have issued a 1009R to you as I believe you executed an intra-trustee-to-trustee transfer for which no 1099R is needed. You should call them and have them issue a revised 1099R with zeros in boxes 1 and 2a.
If the refuse, your 2nd course is to report the $350,000 on line 15a/form 1040; then zero on line 15b and the word “ROLLOVER” to the immediate left of the number “15a”; e.g. in the left margin.
2009-03-24 01:21, By: TheBadger, IP: [126.96.36.199]
L3: I’m worried…
I agree with your response to Ken but have a question. If this trustee to trustee direct transfer is termed as a roll over, does that mean that Ken cannot do another roll over during the next 12 months? If so, that would be quite unfortunate if E-Trade makes another mistake and he needs to roll the money back into the account to correct it. Is there any other way of correcting this problem without using his once per 12 months roll over?
2009-03-24 21:31, By: Ed_B, IP: [188.8.131.52]
L4: I’m worried…Looks like I’m okay… when I plugged in all the 1099 box info into TurboTax the next screen asked me whatI did with the distribution. One of the options was “Rolled over 100% into a new traditional IRA” so I picked it and my $$$ I owe up in the right corner didn’t go up!?! Now if I could just find the Schedule D sheet in TurboTax so I can clarify that all those 1099B security sales didn’t go into my pocket but back into the account… but that’s another story for a different forum… thanks again gang!
Ken2009-03-25 00:55, By: KennyMike, IP: [184.108.40.206]
L5: I’m worried…You should be worried if you think that you do not have to report all sales on Schedule D. The fact that you reinvested the sales proceeds by buying other securities, or reinvested dividends in mutual funds ( or companies thru Dividend Reinvestment Programs (“DRIPS”). All sales outside of retirement plans are reportable on Schedeule D.2009-03-25 03:39, By: dlzallestaxes, IP: [220.127.116.11]
L6: I’m worried…I’m not worried anymore… I found the TurboTax Schedule D edit options and clarified all sales with gains and losses data… a bit of a pain really considering TT reached into the E*TRADE account to get the sale data… it would have been nice if it could also capture the purchase data.
I’m good to go… thank you again everyone… this site is awesome!!!2009-03-25 03:51, By: KennyMike, IP: [18.104.22.168]
L4: I’m worried…Trustee-to-Trustee TRANSFERS are often mislabled as “rollovers”. “Rollovers” are actually defined as situations in which the check is made payable to the taxpayer, and he either endorses the check over to the next firm, or deposits it into his own checking account and writes his own check, depositing it with the next trustee within 60 days.
You can make an unlimited number of Trustee-to-Trustee TRANSFERS within any 12-month period ( which extends beyond 12/31). True “rollovers” are limited to 1 within any 12-month period ( extending beyond 12/31).2009-03-25 03:35, By: dlzallestaxes, IP: [22.214.171.124]