Save time with our cheat sheets, fact sheets, checklists & books!

April 18, 2009

Transfer

Your Guide

Print
Definition
A nonreportable movement of assets between retirement accounts of the same type. Generally, transfers occur between:
  • Two traditional IRAs
  • A traditional IRA and a SEP IRA
  • From a SIMPLE IRA to a traditional IRA or SEP IRA, providing the SIMPLE has satisfied the two-year requirement
  • Two SEP IRAs
  • Two SIMPLE IRAs
  • Two Roth IRAs
  • Two HSAs
  • Two ESAs
  • Two qualified plans, where both qualified plans are maintained by the same employer. The terms of the movement of assets would determine if it is a transfer or a distribution & rollover.
Note: For these transactions (above) the trustee-to-trustee transfer is a nonreportable transaction, which means that no 1099-R or 5498s are issued for the transaction.
See caution in footnote:[1]
 Referring Cite
 Additional Helpful Information
 

 


[1] Some IRA owners may want to ‘expedite’ transfers by having the delivering financial institution give them a check for the amount, instead of waiting for the transfer to be completed between the two financial institution- as such transfers can take days or weeks, depending on the type. Individuals who opt to have the check given to them should exercise extreme caution when the check is requested. This is even more important for inherited IRAs, as irreversible can occur when transfers are erroneously processed as distributions.
[2] Revenue Ruling 78-406
[3] Treas. Reg. 1.408-8, Q&A-8
More

Keep Learning

Domestic abuse distribution

A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual

Eligible retirement plan

The term “eligible retirement plan”, means a retirement plan to which a rollover contribution can be made. These are: (i)an individual retirement account described in

Qualified See-Through Trust beneficiary

Definition A qualified trust beneficiary is a trust that satisfies the requirements so as to be treated as a designated beneficiary.   For retirement accounts inherited

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Be among the first to know when

IRA Rules
Change