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Author: Uther Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76397  
Subject: Roth IRA earnings reported to IRS Date: 2/3/1999 3:44 PM
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I opened a Roth IRA in Jan. 1998. I just got a 1099DIV form from the broker. I'm assuming that the IRS will somehow know that this is an IRA, and that I won't be paying taxes on any earnings inside the IRA.

Also, when I opened my account, there were no forms specifically for Roth IRA, so I filled out a regular IRA form and specified in writing that it was meant to be a Roth IRA (at the direction of the broker.) Are there any specific forms from the IRS that I should have filled out for this IRA?
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8325 of 76397
Subject: Re: Roth IRA earnings reported to IRS Date: 2/3/1999 4:43 PM
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Greetings, Uther, and welcome. You asked:

<<I opened a Roth IRA in Jan. 1998. I just got a 1099DIV form from the broker. I'm assuming that the IRS will somehow know that this is an IRA, and that I won't be paying taxes on any earnings inside the IRA.

Also, when I opened my account, there were no forms specifically for Roth IRA, so I filled out a regular IRA form and specified in writing that it was meant to be a Roth IRA (at the direction of the broker.) Are there any specific forms from the IRS that I should have filled out for this IRA?>>

No, there are no forms you must file with the IRS. However, I'm puzzled as to why you received a 1099DIV. Had you received a distribution, you would have gotten a 1099-R. Also, you might have received a Form 5498 showing the value of the IRA at year end. But the 1099DIV bothers me. Were I you, I would contact your provider/broker and verify their records show you did indeed open a Roth IRA. Otherwise, the IRS may indeed want to tax you on the amount shown on the 1099DIV. I suspicion the broker made an error here, but I'm no tax expert so I don't know for sure. What I do know is I don't get a 1099DIV on my IRAs, but I do get a Form 5498.

Regards....Pixy

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Author: trudyKAS One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8394 of 76397
Subject: Re: Roth IRA earnings reported to IRS Date: 2/7/1999 11:31 AM
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This is informational only, two points to make:

1 I did Conventional to Roth Conversions on some of my IRA accounts in 1998. I received 1099R from each of the custodians for all the conversions.

I was required to report on the revised Form 8606.

I will admit that was a time consuming and complex project because the form is incomplete on its face, and the instructions are not given in sequential order.

I did not receive 5498's on any of my IRAs to date, and my IRS reporting for the year 1998 is complete.

2. The final instructions for the Roth IRA was issued on February 3 1999, and is posted on

http://www.rothira.com/

This definitive information is very specific on reporting and record keeping requirements of the Roth IRAs which should answer the many questions on these subjects posted on this recently.

Regards

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