Forgot to report 1099R with code G, but no impact on taxable income. Should I amend?

[cathiexu]

I contributed (let’s say $100) to after tax 401k and immediately converted it to Roth 401k.  I received 1099 R with code G, but forgot to report it to my 2021 tax return.

If it was done correctly, my understanding is $100 should be added to 1040 line 5a, 5b should show $0 as this was after-tax contribution and there was no earning when it was converted to Roth 401K.

It seems I should add $100 to 1040 5a but don’t owe any tax to IRS. In this case, should I amend? If so, should I send a revised 1040? 

How about 1040x? Since there is no change in taxable income and other lines, should I also add this form?  Thanks! 

[Mike9241]

if you use the IRS tool (see link) it will say you need to report it. I would file an amended return. while you know that it's not taxable the IRS doesn't. also, the IRS want's form 8606 - this is where you'll show it's not taxable.

https://apps.irs.gov/app/IPAR/investigate/IPAR_1/en-US/Attribute~retro_interview_complete~global~glo... 

[fanfare]

When amending on paper,

do not include your old 1040 nor your revised 1040 because the Form 1040-X reflects any changes there and becomes your new tax return.

"How about 1040x?"

1040-X is your amendment. you must sign it.

Note: when you are not changing any dollar amounts on your amended tax return, you can leave all the lines 1-23 EMPTY.

Part III Explanation " I neglected to report Code G rollover on Line 5 (or Line 4). taxable amount zero".

It will take the IRS at least six months to process a paper Form 1040-X.

@cathiexu 

P.S. IRS knows what Code G is so the whole exercise is unnecessary.

[fanfare]

@Mike9241 

Form 8606 is for a Roth IRA, not for Roth 401k

cc: @cathiexu 

[fanfare]

@Mike9241 

I withdraw my comment above.

The form would be applicable in certain situations.

cc: @cathiexu 

[dmertz]

As long as the Form 1099-R has the same amount in box 5 as is in box 1 and there is non nonzero amount shown in box 2a, there is no need to amend.

Form 8606 does not apply to an In-plan Roth Rollover.

[dvnichols]

Hi fanfare or whoever else may be able to help.

I did the same...got trigger happy on submitting my return and failed to include a 1099-R rollover with $0 taxable amount in box 2a and G in box 7.

Fanfare says it is a wasted effort to amend since I owe $0 tax.

Is that true or should I amend as Mike says in this chat chain?

Thanks

[fanfare]

If you are looking for a tie-breaker, see dmertz comment of 7-31-23 above.

OR, use your own judgement.

@dvnichols 

[dvnichols]

Thanks, Fanfare! But mine is not a Roth so line 5 is $0. It was a 401K rollover to an IRA. Any thoughts on that?

[RobertB4444]

If you are feeling like you deeply need to report it then do as @fanfare suggests above and file a paper 1040X with no changes and an explanation.

But there is no change and the IRS has a copy of the 1099-R that you have.  Even if they correct your return it will make no change.  

I would put the 1099-R in your files and let the IRS send you a letter.  There is no need to amend a tax return for this.

@dvnichols 

[dvnichols]

Thank you!!! I decided not to amend, weighing all the info here and also discovering that TurboTax wouldn't walk me through the 1040X. I really appreciate both of you for sharing your expert thoughts.

@RobertB4444 

and 

@fanfare

[atlasthere]

@RobertB4444 

I would have posted a new question, but since this post has most of my questions answered - could you pls help with below question?

There was a 401k rollover to my rollover (traditional) IRA account which I forgot to report on my 2022 tax return. Now I am trying to do a backdoor Roth IRA for 2024 before April 2025 deadline and have moved all of my rollover IRA funds to employer 401k plan. Would I be fine without amending 2022 tax return in this case as well?

[RobertB4444]

You should be.  Maintain all of the records related to the rollover and if you receive a letter related to the 2022 rollover then you'll be prepared to answer them.  Since the rollover makes no actual change to your 2022 return it shouldn't be a problem.  

@atlasthere