Hello,
If I transfer a Roth IRA to a new brokerage and receive a bonus of say 1k,
1. Is the money considered taxable? If so, how does one report it?
2. Is it considered a contribution?
3. Usually the bank reports a 1099 INT- what happens in the case of a Roth?
Thank you.
Taxes on a Roth transfer bonus
Re: Taxes on a Roth transfer bonus
i asked the same question earlier (and it is not specific to Roth, applies to all IRAs)
1. no
2. no
3. not reported on any form. it is treated as 'promotional earnings' in Misc Credits category.
note, that for taxable accounts (not IRAs) you WILL receive 1099 for the transfer bonus.
1. no
2. no
3. not reported on any form. it is treated as 'promotional earnings' in Misc Credits category.
note, that for taxable accounts (not IRAs) you WILL receive 1099 for the transfer bonus.
Re: Taxes on a Roth transfer bonus
It's treated as earnings. Similar to earning interest on it. That's not reportable in a Roth IRA, since Roth IRAs don't get taxed on annual interest, dividends, capital gains, etc.
Re: Taxes on a Roth transfer bonus
Awesome. Thank you.