I had to move all of my accounts from one brokerage to another because of my husband's job. The part that was in brokerage accounts was easy, but I had $2.55 in residuals left in my traditional account, and $3.05 in my Roth account. Please don't be mad at me, but I opted to take the cash instead of rolling those tiny amounts over to sit in cash accounts at the other brokerage
So anyway, I arbitrarily picked for them to take 30% out of my traditional to cover taxes, and nothing out of my Roth (I'm not convinced I've actually gained anything in that account).
Is this going to be super annoying at tax time? The problem with the Roth in particular is that it is almost entirely a rollover of a 401(k) (well, and there's a bit that I contributed as an IRA in 2004) -- and it has been in two different brokerage houses since then. So I have no idea how to determine the basis really.
Since these are such tiny amounts, will the IRS ignore them like they do with small interest amounts? I really can't imagine that I owe more than like $.20 in tax on the Roth part.
If you get a 1099 for the $2.55 in Traditional IRA withdrawal, just throw it on your return. The 1099-R should also show the withholdings of 30%.
I don't think the Roth should trigger a taxable event because you can probably count it as "contribution" vs. the contribution in 2004 (assuming you contributed more than $3.05).