Question

Should I tell the IRS:" Roth Distributions

Forum|Forum|4 years ago
March 29, 2022
1 reply
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I cashed in a Roth account and now wonder if I need to tell the IRS (I am 70 years old).

Also, do I need to tell the IRS if I rollover IRA money from one mutual fund family to another (within 30 days)?

Because you cashed in a Roth IRA, you will likely receive a 1099-R from the Roth IRA custodian. You will include the 1099-R on your tax return for the year referenced in the 1099-R. Assuming you have met the holding period for the Roth IRA, the withdrawn funds will not be taxable.

A rollover from one mutual fund family to another mutual fund family, if done within the same traditional IRA, is not a reportable event. If the funds rolled over came out of one traditional IRA and were rolled over into another traditional IRA, (this may be a trustee-to-trustee transfer) then you may still get a 1099-R reflecting the withdrawal, but because it was a rollover, it will not be subject to tax. You will still have to report the 1099-R on your tax return, and while you will see the amount rolled over on your tax return, the taxable amount of such rollover will be zero.

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