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1099-R 401-k Conversion to Personal IRA

Last year I retired and closed my 401-k account which was not a Roth account.  I requested that the financial company that managed the company 401-k funds send the funds directly to my personal financial institution where I have an existing IRA.  They did not do this and instead mailed a check for the funds to me.  I mailed the full amount of the funds to my financial institution as soon as I received the check and they deposited the monies into my personal IRA.  My question is this: there was approximately 7-10 days between the two transactions, but I did not keep any of the distribution for personal use.

 

How do I show this in TurboTax without being penalized?

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Accepted Solutions
dmertz
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

1099-R 401-k Conversion to Personal IRA

Yes, with the code being G this was a direct rollover.  The check was made payable to the new IRA (or at least to the new IRA custodian for your benefit) so was not a distribution paid to you.  Because there was no distribution paid to you, there was no deadline to deposit it into the IRA as a rollover as required.  It's common for the plan to send the check to the individual for delivery to the new financial institution where the individual serves only as the means of delivery to the financial institution.

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5 Replies
dmertz
Level 15

1099-R 401-k Conversion to Personal IRA

What is the code in box 7 of the Form 1099-R that you received for the distribution from the 401(k)?

1099-R 401-k Conversion to Personal IRA

The code is 'G'

1099-R 401-k Conversion to Personal IRA

I see on the IRS website that that designates "Direct rollover of a distribution to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA", so I think I'm good.

 

I didn't see the code when I received the 1099-R.

dmertz
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

1099-R 401-k Conversion to Personal IRA

Yes, with the code being G this was a direct rollover.  The check was made payable to the new IRA (or at least to the new IRA custodian for your benefit) so was not a distribution paid to you.  Because there was no distribution paid to you, there was no deadline to deposit it into the IRA as a rollover as required.  It's common for the plan to send the check to the individual for delivery to the new financial institution where the individual serves only as the means of delivery to the financial institution.

1099-R 401-k Conversion to Personal IRA

dmertz, Thank you for your prompt response and for clarifying my question.

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