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Author: 1000nam One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: 1099-R Date: 2/4/1999 9:11 AM
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I received two 1099R for IRA distributions from my deceased spouse's IRA and Employee. These distributions are not taxable, as I received the proceeds as a direct rollover into my IRA. I will be reporting the total distributions on lines 15a and 16a of 1040 with the taxable amount on lines 15b and 16b as zero.

Am I supposed to attach copies of the 1099-R to my return? The insructions which came with the 1099-R were not clear. It basically said that if you are required to attach the 1099-R, then attach Copy B. It did not clarify under what conditions you are supposed to attach them.

One of the 1099-R (for the IRA) also showed the taxable amount as equal to the total distribution, with the notation that the payer is not required to determine the taxability of IRA distributions. Is this correct or should I ask the payer to issue me a revised 1099-R with the taxable amount = zero?
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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9575 of 121061
Subject: Re: 1099-R Date: 2/5/1999 2:08 PM
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[[ I received two 1099R for IRA distributions from my deceased spouse's IRA
and Employee.]]

Sorry to hear about the loss of your spouse.

[[These distributions are not taxable, as I received the proceeds as
a direct rollover into my IRA. I will be reporting the total distributions on lines
15a and 16a of 1040 with the taxable amount on lines 15b and 16b as zero.]]

If this is the case, you'll also want to write the words "rollover" in the left hand column of Form 1040. Read the instructions for those lines and it'll explain it to you.

[[ Am I supposed to attach copies of the 1099-R to my return? The insructions
which came with the 1099-R were not clear. It basically said that if you are
required to attach the 1099-R, then attach Copy B. It did not clarify under what
conditions you are supposed to attach them.]]

Generally only if you have any federal withholding. Other than that, the IRS has the information in their computers, and will match the total distribution on your tax return to their records.

[[ One of the 1099-R (for the IRA) also showed the taxable amount as equal to
the total distribution, with the notation that the payer is not required to determine
the taxability of IRA distributions. Is this correct or should I ask the payer to
issue me a revised 1099-R with the taxable amount = zero?]]

If the transfer was direct (trustee to trustee transfer) and you did not receive a check, then the 1099R should show NO taxable income. I agree that the custodian is not required to compute the taxable amount, but upon a transfer to another traditional IRA account, there can be no tax issues.

It's unlikely that you'll get the custodian to re-run the 1099R. You might take a chance at it. But I wouldn't waste my time. As long as you can PROVE the the distribution was rolled over (or transferred) to another traditional IRA account, there should be no problem with the Form 1099R as it currently exists.

Hope this helps...
TMF Taxes
Roy

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