Rollovers, Transfers, 1035s: Don’t Assume You Already Know

July 6, 2023 by Charlie Gipple

A client of mine calls me up and says, “My CPA says (oh boy, here we go) that I should have gotten a 1099-R for my direct rollover that we did into my SEP IRA.” I said, “It wasn’t a rollover, it was a direct transfer which does not generate 1099-Rs.” He said, “You are wrong, my CPA said that direct rollovers and direct transfers are the same and both are reportable to the IRS.” I said, “Your CPA is incorrect. Direct rollovers are reportable but direct transfers are not.” A week later he came back and said, “My CPA says you are correct.”

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Originally Posted at Broker World Mag on July 1, 2023 by Charlie Gipple.