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frca
Level 1

Forgot to report 2018 401k to IRA rollover + non-deductible contributions. Please help?

Hello folks,

 

In 2018, I opened 2 IRAs (1 Roth, 1 Trad) with Vanguard and I forgot to report a direct rollover from two 401k (1 roth, 1 traditional) with Voya. The rollover was direct and had no tax implications (I didn't take any distributions and the check was mailed from Voya to Vanguard directly). I also forgot to include non-deductible contributions to my IRA for that year ($5,000 to Roth, $500 to Trad, they're non-deductible because I am over the income limit).

I filed through TurboTax and I'm now looking to file the amended returns (even though there are no tax implications in terms of refund or underpayment). I believe I need to file form 8606 for the $500 non-deductible contribution to the Trad IRA as well as a 1040x to report my 401k -> IRA rollover (i.e. include form 1099-R).

Questions:

  1. do I really need to file the amended return? I haven't been contacted by the IRS (yet), this is just as an excess of caution

  2. do I need to file an a federal AND state return? I understand the need for federal, not too sure about state

  3. is there anything else I'm missing or any help you could give me?

 

Thank you so much!

3 Replies
JohnW222
Expert Alumni

Forgot to report 2018 401k to IRA rollover + non-deductible contributions. Please help?

These are valid questions and, yes, you need to amend your return to include the rollover and non-deductible contribution, even though there's no additional tax owed.  The IRS needs this to be reported.

When you're inputting your amended return information, you may be prompted to amend your state return, as well.  You should continue into your state return, and if there's no change (and there most likely won't be), you won't need to file the state return.

I can't think of anything else you're missing; you seem to be very conscientious about your taxes.

Please see the TurboTax Help article "How to amend (change or correct) a return you already filed" for instruction on how to amend your previously-filed tax return.

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frca
Level 1

Forgot to report 2018 401k to IRA rollover + non-deductible contributions. Please help?

Hi John,

 

Thank you so much for your answer. I know I'm overthinking it, but I must say TurboTax is not super clear on the amendment process between federal and state - I have gone ahead and amended the federal return (so I'll be mailing: form 1040x, the updated form 1040 with the trustee-to-trustee rollover, both forms 1099-R as well as form 8606 for the nondeductible IRA contribution). I can't seem to find anything online answering whether these two changes need to be on the state return as well (i.e. if I should file an amended state return on top of the federal) or if federal alone is enough. 

 

Sometimes TurboTax has me amend the state return, sometimes it doesn't. And when it does, I usually end up on a screen when it asks me to select a reason for amending ("IT-201-X Pg 1-2 -- IT-201-X Pg 5-6: Reason(s) for amending your return must be selected. Check all applicable boxes.") and none of the available reasons really makes sense to me (Federal audit change, Worthless stock/security, Claim of right, Wages, Military, Court ruling, Workers' compensation, Treaties/visa, Tax shelter transaction, Credit claim, Protective Claim, Net, Operating Loss box, Report SSN box, Other). 

 

Considering that the above are the only two things (added direct rollover and forms 1099-R + form 8606 for nondeductible contribution) I have amended on my federal return, would you say I need to amend my state return as well?

 

Thank you so much!!

DaveF1006
Expert Alumni

Forgot to report 2018 401k to IRA rollover + non-deductible contributions. Please help?

Entering the non-deductible contribution will not affect your state return so you will not need to enter this information. You did this on your federal return so that your non deductible contribution will be correct on form 8606 that tracks all non deductible contributions to the IRS. 

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