Thanks for the reply. However, I had a question. I posted the same question to the TaxMama forum since I didn't know which forum might reply. They seemed to think the 401k funds should count as income on my 2018 return and need a revised return. I did it as a 60 day rollover because it was going to be faster from the 401k company and sent it immediately to the trust company. You also referred to the 1099 sent from the trust company but they did not send one for the 401k rollover and said that they would only issue one in 2020 because the funds went into the Roth IRA in 2019 even though it did so before the April 15th deadline. I pointed out that the funds went in before 4/15 but they insisted that they wouldn't issue a 1099 until 2020.
TaxMama wrote:
"So, there is nothing wrong with rolling your standard 401K funds to a
Roth IRA. You don't need to put it into an IRA first.
That's OK. But, since all the money in the account was pre-tax, the entire rollover
is taxable.
Which means that you will have to amend the 2018 return to report that income.
Include a copy of the statement showing the amount was rolled into a Roth IRA.
And include a copy of the 1099R which didn't show the code for a taxable rollover.
You should not have any penalties. But you should have interest on the
balance due.
Can you ask your previous trust company to pay the interest?
No.
You got their 1099-R by March or earlier.
You were able to log into your accounts with them every day, all year
to see what was going on.
You had until October 15th to sort this out. And if you had asked us (or any tax pro), we would have told you to include the rollover as taxable income - and you would not have had
that huge refund - and you wouldn't have to amend now.
Sorry, I wish I had better news for you.
Now, about that 1099-R they are going to issue this year.
Tell them not to issue anything at all for 2020.
It will just complicate issues."
