Ask Terry Questions IRA rollover

IRA rollover

By Terry Savage on January 26, 2024 | Financial Planning / Retirement

I put in $6,000 into an IRA or ROTH account with bmo bank and after 1 year and made $32.49 in interest and then I took it out in one day after the 1 year and moved it into another ROTH account !! Do I have to pay taxs on that $32.49 interest that I made or no. Thank you for your answer Robert

Terry Says

No, as long as you reinvested the full amount into your new IRA. Be careful they don’t send you a 1099 though, from the original bank. You should have done a direct rollover to a new IRA. If that happens, contact the new trustee and in this case, the trustee receiving the funds needs to file Form 5498, IRA Contributions, and list the amount as a rollover contribution so that it is reported correctly.

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