I have a 1099-R from 2017 but didn't cash out my IRA until 2018 why do I have a 1099-R?

 

Retirement tax questions

What code is in box 7?
Is the IRA/SEP/SIMPLE box checked?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Retirement tax questions

Did you ask the issuer?

Retirement tax questions

The code in box 7 is G

Retirement tax questions

No I haven't contacted the issuer. They are currently closed.

Retirement tax questions

A code G indicates a direct rollover.  Did you have a retirement account such as a 401(k) rolled into an IRA?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Retirement tax questions

It was an ESOP account the rolledover to an IRA. It was frozen for sometime once the company sold all the shares were rolledover into an IRA account. I cashed out in January of 2018. When I cashed out i have 30% taken out. I'm just worried this is going to make us owe on our taxes.

Retirement tax questions

The rollover 2017 1099-R that you must report is not taxable.  The distribution will be taxable next year when you get the 2018 1099-R a year from now.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Retirement tax questions

Okay I understand. So with that said it shouldnt effect my tax return? I just need to report the 1099-R? Thank you for all your help also... 🙂

Retirement tax questions

Yes.  Just enter the 1099-R.  The code G will make it a not taxable rollover.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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Retirement tax questions

Thank you for all your help.