I had 2 accounts with TD Ameritrade, a regular account and my Roth IRA and as you may know TDA accounts became Charles Schwab accounts in 2023.
Under my tax forms for my regular (important) account, I have a 1099B. Lots of weird stuff that looks like I sold those stocks all on 1/17/23 but I’m sure it is an accounting thing due to the transfer to another brokerage. But there are the main concerns I have.
These were stocks in my Roth IRA so why would they list it as a statement in my regular account and why would I be getting a 1099B for it?
Why would they list the stocks but none of the ETFs in my Roth?
Is this a screwup on their end? If so will the IRS come after me if I ignore the 1099B in my taxes? The summary at the top is all 0.00 but again, why are they sending in tax forms regarding this?
I’m certainly not a tax expert, but if the top line is 0.00, then I would guess that this is just the result of accounting for the change in registration from TD to Schwab. Any other non-zero entries on the form? Perhaps the form records the cost basis for the account on the date of the transfer.
I do volunteer taxes preparation each year, but without seeing the 1099B it’s virtually impossible to offer an opinion on this.
But if it’s true that the stocks were/are in your IRA account, but this form is for your regular account, then I think it’s a screwup on their part. Even if it’s all zeros, I would contact them for an explanation.
If they handled the transfer correctly as a transfer in kind, it is essentially just a change in custodian. It’s conceptually similar to moving your horde of gold bars from the vault at one bank to the vault at another. There are no sales, no tax consequences, and nothing (not even things that appear to net to zero) should appear on any 1099.
I think you should definitely contact them and get it sorted out. Even if you think whatever they are showing nets to zero on the 1099, since nothing should be there at all they may not have recorded the transfer correctly.
[Moderating]
This looks like a request for professional advice. Off to IMHO.
Idea #1:
Often when brokerages give out your 1099B, they also include lots of other transaction information that they are careful to mention is not reported to IRS. Are you perhaps misreading the package they sent you and assuming all e.g. 5 pages are 1099B, when only page 1 is the no-kidding 1099B? Tied in with that idea, usually the brokerage includes a brochure teaching you how to read their package. That might be enlightening.
Idea #2:
The Roth transfer in kind is a form of rollover. I’ve never done a Roth rollover, but I have done traditional rollovers, so what follows is an educated guess, not a fact. Being as this is a rollover they should have provided you with a 1099R about that. The various codes on the 1099R should indicate that it was a non-taxable rollover, not a straight withdrawal. So although the scary big number goes into your tax program, and does appear on some IRS form or worksheet somewhere, it does not count as income and does not affect your tax bill.
Idea #3:
If you are using tax prep software, do a dry run where you import your 1099 data from SchwabiTrade and see what happens. In most software you can just start a fresh blank return, skip right to the “import for brokerage” step, do that, then dig through the tax forms that generates to see what data went where. If you decide that’s all screwed up, call SchwabiTrade and ask WTF?
Mongol banking at its finest.
I have a HSA with TD Ameritrade and now Schwab. No 1099 generated as of yet. They’re setting Feb 16 as the final deadline.
Schwab does split into two sections “Equities” and “ETFs & Closed End Funds” so that’s probably what’s reflected in your statement. Without seeing a anonymized screenshot of your 1099 it’s hard to draw conclusions, but this is not a taxable event.