·Definition
Retirement-Industry term used to refer to a transaction that occurs in a retirement account, which the plan administrator, IRA custodian, or payer is required to report to the IRS and the account owner. Examples include:
- Distributions, which are reported on IRS Form 1099-R
- IRA contributions which are reported on IRS Form 5498
- Rollover contributions which are reported on IRS Form 5498. This is required only for IRAs. Rollover contributions to qualified plans, 403(b)s and 457(b) plans are not reported on Form 5498
- Form 1042-S used to report distributions to nonresident aliens, when taxes are withheld from the distribution
Referring Cite
N/A
Additional Helpful Information
The following transactions are non-reportable:
- A trustee-to-trustee transfer between two accounts of similar type , for example between two traditional IRAs, between a traditional IRA and a SEP IRA, from a SIMPLE IRA that has met the two year requirement to a traditional IRA or a SEP IRA, from a SIMPLE IRA to another SIMPLE IRA or between two Roth IRAs
- A movement of assets between accounts under the same qualified plan, 403(b) or 457(b) account
- Fees paid from the account, such as administrative or management fees
- Total distributions of less than $10