Rollover question

[elatkr36]

Hello,

On my form 1040 for 2020, line 5b says "ROLLOVER" but line 5b also says $0. However, I did have money from a 401(k) plan rolled over into two IRAs at another financial entity. I received two 1099-Rs for 2020 for these rollovers, and I reported the 1099-Rs in Turbo Tax for my 2020 tax return. Line 5a reflects the amount that was rolled over, but line 5b says $0. Is my 2020 Form 1040 saying that no money was rolled over? If so, do you know why the rolled-over money is not reflected on the Form 1040? If this helps, to my knowledge, the money was not actually deposited into the IRAs until early January 2021, even though the rollover money came out of the 401(k) in late December 2020.

Also, do I need to report anything on my 2021 tax return to indicate that the money was actually rolled over into the IRAs? The financial entity for the IRAs issued two Forms 5498 for me for 2021.

[macuser_22]

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@elatkr36 wrote:

Hello,

On my form 1040 for 2020, line 5b says "ROLLOVER" but line 5b also says $0. However, I did have money from a 401(k) plan rolled over into two IRAs at another financial entity. I received two 1099-Rs for 2020 for these rollovers, and I reported the 1099-Rs in Turbo Tax for my 2020 tax return. Line 5a reflects the amount that was rolled over, but line 5b says $0. Is my 2020 Form 1040 saying that no money was rolled over? If so, do you know why the rolled-over money is not reflected on the Form 1040? If this helps, to my knowledge, the money was not actually deposited into the IRAs until early January 2021, even though the rollover money came out of the 401(k) in late December 2020.

Also, do I need to report anything on my 2021 tax return to indicate that the money was actually rolled over into the IRAs? The financial entity for the IRAs issued two Forms 5498 for me for 2021.

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Line 5a reports the amount.

Line 5b is zero because rollovers  are tax free.  Line 5b is th taxable amount which is zero.  Line 5a and the word ROLLOVER reports it to the IRS.

[elatkr36]

Thanks. So line 5a reports the rollover amount for 2020? And does it matter that the money was not deposited into the rollover accounts until early 2021 - would that affect the rollover amount reported for 2020?

Also, it sounds like I do not need to report anything on my 2021 tax return to indicate that the money was actually rolled over?

[macuser_22]

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@elatkr36 wrote:

Thanks. So line 5a reports the rollover amount for 2020? And does it matter that the money was not deposited into the rollover accounts until early 2021 - would that affect the rollover amount reported for 2020?

Also, it sounds like I do not need to report anything on my 2021 tax return to indicate that the money was actually rolled over?

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Nothing is reported for 2021 by you.   If you have a 2020 1099-R for the 401(k) distribution and it was rolled to an IRA that is reported on your 2020 tax return only.     The receiving IRA custodian reports it to the IRS with a 5894 form and you get a copy of that form.   Nothing else to do.