SEPP 1099-r and roth conversion 1099-r
L1: SEPP 1099-r and roth conversion 1099-rI know I ask a lot of questions today, but please bear with me for just one more.
I know that annual SEPP distributions from my simple rollover IRA SEPP account show up on 1099-r from brokerage house, and go on line 15b of 1040 (2012).
I have a seperate rollover IRA that I am considering doing periodic and variable amount roth-ira conversions on (different amounts on different dates in different years). I see that this conversion also generates a 1099-r and also goes on line 15b of 1040(2012).
wont this appear to the irs as if I had varied the amount of my annual SEPP distriburion from previous years if both the SEPP distribution and the roth ira conversion amount go on the same line 15b? I do not know if I will get two seperate 1099-r’s because they are from two seperate accounts within the same brokerage house? I’m not sure if it would make a difference if there are two seperate 1099-r’s or if the amounts were combined?
how are these monies seperated out?
p.s. I allready use form 5329 as the 1099-r from the SEPP distribution is listed as “no known exception” and I am under 59.5. I do have an accountant that does my taxes
2013-12-06 03:58, By: ihf, IP: [220.127.116.11]
L2: SEPP 1099-r and roth conversion 1099-rIf he lists them with separate identifying names (i.e. SEPP 72-T and ROTH CONVERSION), AND SEPARATE ACCOUNT NUMBERS, as I would do, there should not be any problem.
You should get 2 separate 1099-Rs, but you can verify with your broker that is what they will do.2013-12-06 05:18, By: dlzallestaxes, IP: [18.104.22.168]
L3: SEPP 1099-r and roth conversion 1099-rcan this be done when filling electronicly?
My accountant said that he could list them seperately on the 1040,but that they would just get added together on the transmission, and he is requiered to file electronicly.
is there any way to clarify this if filling electronicly
I did get two seperate 1099-r’s. one (sepp) reason 1, and the other (ira conversion) reason 2.2014-02-06 21:18, By: ihf, IP: [22.214.171.124]
L4: SEPP 1099-r and roth conversion 1099-r1. You can give your accountant an “opt out” form, so that he can file your tax return on paper.
2. Your accountant is probably under the universal misconception about e-filing. In actuality, the IRS regulations require him to e-file if he “files” > 11 tax returns. However, the IRS’ published definition of “filed” is “MAILED”, i.e. if he mailed > 11 tax returns for clients to the IRS by taking them to the post office after the client signed them, then he is correct.
But 99% of the accountants in the country do no mail any tax returns for their clients after they are signed. I prepare significantly more than 11 tax returns, and have never e-filed. I am a liaison for 10,000 accountants in PA with the IRS, and have received public acknowledgements from the IRS at practioner conferences.2014-02-06 22:08, By: dlzallestaxes, IP: [126.96.36.199]
L5: SEPP 1099-r and roth conversion 1099-rThe key here is that a 1099R must be issued for each account. Since your conversions are from an IRA account that is not part of your SEPP, the 1099R has the same effect as if you had another IRA account outside the plan for emergency distributions. The total of all of these forms goes on 15a and 15b.
The conversion also goes on Form 8606, but that is not conclusive either since it’s permissible to convert within a SEPP plan.
Your situation of having multiple 1099R forms on line 15is not that rare. You could ask the preparer to include an explanatory statement that your SEPP plan applies only to distributions from the 1099R showing IRA AC# …… and the conversions are from an IRA that is not part of the SEPP. That should be enough to clear things up for the IRS. In addition, the amount you will show on Form 5329 is only the distribution for the SEPP.
The conversions are automatically exempt from the 10% penalty and do not go on the 5329.
2014-02-06 23:46, By: Alan S., IP: [188.8.131.52]