FAQs on Form 1099 R

Why is My IRA Rollover Account Reported on Form 1099-R?

When a Traditional IRA is converted to a Roth IRA, the funds are being distributed to you directly, and therefore you are responsible to pay income tax on the contributions. The taxable amount that is converted is added to your income taxes and your regular income rate is applied to your total income. This is because, unlike a traditional IRA, a Roth IRA is taxed upfront and no taxes are applied to the Roth distributions.

Last modified 26 Jul 2017 16:07 EST

Success Starts with TaxBandits

The Smart Business Owners Choice

Access our resource center for more
information about tax relief due to
COVID-19. Visit Now