1099-R for stock

Forum|Forum|2 years ago
February 18, 2024
2 replies
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In 2015, I transfered shares from my ESPP to my TD Ameritrade account, where I had a Roth IRA account. Then Charles Schwabb took over. I sold the stock in 2023. I received a 1099-R but no 1099-B. The stock was sold at a loss. The distribution is not causing any tax liability since I contributed more to the Roth than the distribution over the years. But the distribution was a stock sale and then withdrawal, not a withdrawal of Roth IRA contributions. What do I do? Enter the 1099-R as well as the stock sale information (I have all cost basis details)?

Not A Product Question

fanfare

Employee

when you sell stock in a Roth to prepare for a distribution of cash, or for any other reason,

the sale is not reported anywhere.

enter the 1099-R.

@napinkel

napinkelAuthor

But I then withdrew the funds, so I need to recognize the loss on the sale. The stock was not or should not have been a part of my Roth IRA, just transferred to TDA. I was able to fill out all the proper info without the 1099-B within turbo tax and no errors identified, but just want to double check as this is my first stock sale.

fanfare

Employee

maybe you should have raised the issue with TD at the time the improper deposit was made.

It's too late now.

The error is in your favor

Mike9241

Prior to 2018 you could Qualify for a Tax Deduction on Schedule A:

Only in very rare situations can you deduct losses in your Roth IRA account.
To qualify for the deduction, you must close all of your Roth IRA accounts, including those with profits.
Your traditional IRAs need not be closed, as they are treated separately.
The value of your Roth IRA from the previous year or at any point during the time the account was open does not matter

For tax years after 2017, the deduction described is no longer available.

https://www.investopedia.com/articles/retirement/05/012505.asp#:~:text=If%20the%20loss%20occurred%20in%20a%20Roth%20IRA%2C,aggregate%20of%20all%20accounts%20of%20the%20same%20type.