IRA custodians that code 1099r correctly
L1: IRA custodians that code 1099r correctlyIm going to retire next feb 14 will be 50 will do distubtion sometime in mar 14, I have read about having 1099 coded wrong and having to fill out a form 5329. Is there a ira custodian that will code correctly that gives me all kind of option to investments with 401k that I rollover . Thxs in advance2013-08-18 16:29, By: draggen3, IP: [220.127.116.11]
L2: IRA custodians that code 1099r correctlyThey all code a 1099 correctly some just don’t use a code of ‘2’. You would be better off finding a custodian that you are comfortable with from an investment standpoint and learning to complete a 5229 as part of your tax return.
Remember, regardless of what code you get on a 1099, it is still between you and the IRS. It is your responsibility to make sure that the plan operates correctly, not the custodians.
Make sure that you check out our Planning Pointers2013-08-18 16:45, By: Gfw, IP: [18.104.22.168]
L2: IRA custodians that code 1099r correctlyI understandthat TD Ameritrade will code the distribution correctly on the 1099, but have not actually validated that yet. My IRA is with them, and I plan to start my SEPP next year. They have assured me that for the 1099 they “will code the transaction as D2, which is specific to 72T distributions”.2013-09-23 18:56, By: Clawdad, IP: [22.214.171.124]
L3: IRA custodians that code 1099r correctlySee my post above.
If you want to use TD Ameritrade, do, but not because they will give you a code of ‘2’ (there in no code os ‘D2’ for a SEPP plan).
If you are going with TD Ameritrade because they will give you a code of ‘2’, then you are rerally going with them for the wrong reason.
Also note, TD Ameritrade could change the way they code a SEPP plan tomorrow, or next month, or next year, or next whenever… 2013-09-23 19:28, By: Gfw, IP: [126.96.36.199]
L4: IRA custodians that code 1099r correctlyI agree with gfw.
Would you select a Doctor just because he could fill out the medical insurance forms, or select one because he was a good diagnositian ?
Or a mechanic because he could fill out the insurance claim forms, rather than one who could properly fix your car ?
It doesn’t matter what code is used, they are both “correct”, but companies have decided what they are comfortable with. ALL TAX SOFTWARE EASILY PREPARES FORM 5329, SO THAT IS NEVER A PROBLEM FOR TAXPAYERS OR THE IRS.2013-09-23 20:39, By: dlzallestaxes, IP: [188.8.131.52]
L5: IRA custodians that code 1099r correctlyWhile I agree that it is routine to file the 5329 and the IRS is used to receiving them, you might check with Schwab.In the past they provided exception code 2, but you should check with them to see if they still do. Schwab is large, stable and offers a wide variety of investments including some with extremely low expense loads.2013-09-24 02:37, By: Alan S., IP: [184.108.40.206]
L6: IRA custodians that code 1099r correctlyAnd Vanguard which is the largest mutual fund company, and has the lowest fees, and about 100 different funds and ETF’s.
And, they are very experienced with SEPP 72-T plans.2013-09-24 03:55, By: dlzallestaxes, IP: [220.127.116.11]
L7: IRA custodians that code 1099r correctlyI have a 72t with USAA and they provide exception code “2”.2013-09-24 15:56, By: bobmac03, IP: [18.104.22.168]
L5: IRA custodians that code 1099r correctlyGood points GFW and dlzallestaxes. I like TD Ameritrade for the support, discounts and their options tradingplatforms, having the distribution coded “2” is just icing on the cake, not the driver.2013-09-25 17:11, By: Clawdad, IP: [22.214.171.124]
L6: IRA custodians that code 1099r correctlyI hope that you are very experienced in options trading.
I have seen articles that options, and commodities, investors lose money 80%-90% of the time. This is significant to start with, but even more so since they get no tax deduction for their losses. And, you are “gambling” with your retirement. They say that the stock market is the largest casino in the world.2013-09-25 18:39, By: dlzallestaxes, IP: [126.96.36.199]