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Posted by Benjamin Yazersky CPA on February 4, 2007, 2:05 am
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>>> Years ago my parents set up a trust for my kids (two account
>>> in the same single trust for both of two kids) and purchased
>>> a tax-deferred annuity. I am the trustee. We can debate the
>>> wisdom of this and the investment chosen, but that is not
>>> the nature of my question.
>>>
>>> In 2006 as trustee I rolled the annuities from Allstate to
>>> Vanguard. Today I received, for each account, Form 1099-R
>>> showing a total distribution and the basis (contributions).
>>> The distribution code is marked "6" which is for a tax-free
>>> Section 1035 exchange.
>>>
>>> Do I need to file a Form 1041 for the trust (there is no
>>> other income or transactions in this trust) showing this
>>> rollover, or does the distribution code "6" calm the IRS
>>> computers that this is a rollover??
>> I'd file the 1041
> I looked at the 1041 and could not find where to report
> 1099-R income then where to reconcile the taxable amount as
> zero. Any suggestions?
I don't have the 1041 instructions in front of me right now,
but you should read them carefully. It might indicate where
it goes. I would possibly attach a schedule showing the
transactions.
Another reason to file a 1041 is that it starts the statute
of limitiations.
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
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