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If you do a 1035 exchange do you need to file a tax return?
Old 02-14-2013, 03:37 PM   #1
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If you do a 1035 exchange do you need to file a tax return?

I will have no other income.
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Old 02-14-2013, 09:09 PM   #2
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tax_info_1099

Q: Why did I receive a 1099-R if a 1035(a) tax-free exchange was placed?
A: A 1035(a) tax-free exchange may be tax free, but the IRS still requires this exchange to be reported. However, the 1099-R will show the taxable amount as $0 and distribution code of "6" (1035 exchange).

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Based on the above plus p. A.1. here http://www.irs.gov/pub/irs-pdf/p4012.pdf

doesn't look like you'd have to file.
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Old 02-15-2013, 09:51 AM   #3
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For some reason I am still confused about this can some other folks jump in here. Thanks kaneohe I love the pdf but maybe I should ask this on a tax forum.
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Old 02-15-2013, 10:12 AM   #4
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one confusing part may be the "reportable" part. I interpreted that to mean the company must report it to IRS and you.........not that you must report it on your tax return.

an alternate path........you might spend your whole life thinking about this.....
and still not be sure.......... or you could spend 5 min filing a return (and still not know) but then it will be done.
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Old 02-15-2013, 10:15 AM   #5
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Thanks kaneohe
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Old 02-15-2013, 10:24 AM   #6
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I think you also got an answer from Alan S. on bogleheads. He is the main retirement forum guru at fairmark.com (the tax forum) and seems to know everything........
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Old 02-15-2013, 10:46 AM   #7
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True two heads are better than one or in this case two forums are better than one. That is good to know about Alan S.
Thank You
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Old 02-15-2013, 09:08 PM   #8
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Quote:
Originally Posted by kaneohe View Post
I think you also got an answer from Alan S. on bogleheads. He is the main retirement forum guru at fairmark.com (the tax forum) and seems to know everything........
rec7.......you might have misinterpreted this post (or perhaps I didn't write very clearly). I believe Alan S. already answered this same question on the bogleheads form. Alan S. is the go-to guy on the fairmark.com forum for retirement related questions which would be better placed in the retirement sub-forum (rather than the Other Topics subforum). However even if placed where he would more likely see it, the odds are the answer would be the same as you have already received since the question is the same.
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