Taxes on a Roth transfer bonus

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Topic Author
jackal
Posts: 191
Joined: Thu Jan 14, 2010 6:24 am

Taxes on a Roth transfer bonus

Post by jackal »

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.
simas
Posts: 1295
Joined: Wed Apr 04, 2007 5:50 pm

Re: Taxes on a Roth transfer bonus

Post by simas »

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.
MrJedi
Posts: 3540
Joined: Wed May 06, 2020 11:42 am

Re: Taxes on a Roth transfer bonus

Post by MrJedi »

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.
Topic Author
jackal
Posts: 191
Joined: Thu Jan 14, 2010 6:24 am

Re: Taxes on a Roth transfer bonus

Post by jackal »

Awesome. Thank you.
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