Asset transfer

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    Asset transfer

    I transferred some money from one Roth IRA into another this year. I don't think this is a taxable event, but do I need to report it anyway? If so, how? Should I be expecting forms from both sides of the transfer -- the fund manager the money went from and the fund manager it went to??
     
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    Re: Asset transfer

    In Response to Asset transfer:
    [QUOTE]I transferred some money from one Roth IRA into another this year. I don't think this is a taxable event, but do I need to report it anyway? If so, how? Should I be expecting forms from both sides of the transfer -- the fund manager the money went from and the fund manager it went to??
    Posted by BostonDotCom[/QUOTE]

    Deaer BostonDotCom:

    If you arragned for the transfer to occur directly from one custodian to the other, then you may need to disclose the amount on your return in line 15a, but don't include it in line 15b in figuring your income.  If you took a check made out to you from the original custodian and then, WITHIN 60 DAYS, paid the same amount over to the new custodian, the same result occurs.  If you took a check and missed the 60 day deadline, then you will need to prepare a Form 5329 to compute the taxable amount, the amount of any penalty for early distribution, a further penalty of 6% for an excess contribution to the ROTH IRA account and you will have to arrange for a withdrawal of the amount that you rolled over outside of the 60 day window for rollover, since it will be subject to a continuing 6% penalty for each year that it remains on depsoit in an IRA account, since it was not a qualified rollover.

    Hope this helps in preparing your returns!

    Mark H. Misselbeck, C.P.A., M.S.T., Tax Principal
    Katz, Nannis + Solomon, P.C.
     

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