Tax Law (Questions About Taxes)/1099R


My grandmother retired the end of 2012.  She took a first disbursement from her work retirement that year; no problem.  In Jan 2013, she moved the remaining amount of her retirement account to another broker.  We had request it be transferred directly, but they would not do that and sent the check to her in her name, which she endorsed over the new broker last Jan.  She just received a 1099R for the amount she moved.  It was never her intention to receive the full amount as a disbursement, and we're sort of annoyed that they would not transfer it directly.  Is that taxable income?  If so, what line does she need to claim it on on her 1040?  When she receives further disbursements from her new broker account, will she be taxed again?
If it is not taxable, is there anything she needs to do with that 1099R?
thanks in advance.


Thanks for your question.

The original broker has to report the transfer via a 1099-R.  If it was done correctly, the code in box 7 the 1099-R should be a "code G" which is a direct rollover.  If this is not the code, the form was completed improperly and you should contact the broker.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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