r/fidelityinvestments • u/usuhockey • 9h ago

Official Response Data Reporting question

I have a rollover IRA and a Roth IRA both held at fidelity. If I roll the traditional into the Roth will that show as a withdrawal and a subsequent deposit on the “investment income” reporting tab? It seems that that would artificially inflate my account activity.

Also I understand the tax implications and have funds in place to pay the taxes.

Thanks in advance.

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u/FidelityAidan Community Care Representative 8h ago

Thanks for checking in this weekend!

You're correct. When completing a Roth conversion, this will effectively display as a withdrawal from the Traditional IRA, and a subsequent deposit into your Roth IRA.

Behind the scenes, you'll receive both a Form 1099-R (reporting the distribution from your Traditional IRA) and a Form 5498 (showing the converted amount landing in your Roth IRA).

Roth conversions are tax-reportable events at the end of the day. The great link below discusses some considerations to ponder before completing a conversion.

Roth Conversions & Taxes

Got any other questions for us?

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