@melissaforpeace315 wrote:
@Opus 17 Thank you for your reply!! So even though when I file my 2023 taxes, I won't have any form that indicates that I successfully rolled over my 401k check into an IRA, they won't question it? Just curious- then how would the IRS make sure that the person didn't 'cash out' the check or just basically write the check to their taxable brokerage and thus just use it instead of rolling over into a retirement account?
Taxes are mostly on the honor system, and it's not really clear how much matching the IRS really does. (Remember the IRS computers are still based on 1960s technology, using a programming language that almost no one uses. They aren't as all-seeing and all-knowing as they want you to think.)
You will have a 2023 1099-R showing a withdrawal, and the rollover contribution won't be reported until the new broker issues their 2024 form 5498 in May 2025. (Because I'm pretty sure a rollover can't be retroactive like some contributions can be.). But even under the best of conditions, the IRS won't get around to trying to match the 1099-R to a 5498 for 9-12 months after you file. If they do send you a letter, reply with copies of your statements showing the completed rollover and explain that it will be on the next 5498.
