You will not be able to transfer points earned though banking to an airline, Hilton or another member. Citi tracks the source of the points even after you combine accounts. If you initiate an airline transfer it will be filled with points earned by the credit card, and the 1099 issue does not arise.
Yep exactly.. I meant transfer points that were pre-existing in the Prestige account earned from that credit card, not the Taxable checking points.