1099R, but not rolled over yet

[LaurenG1020]

My husband left a job last year 2020, so they sent him a check for his 401K. We received a 1099R regarding this money.

We have not cashed the check because he is going to roll it over into a 401K at his new job. He is not eligible to roll it over until June of this year, though. So we have not cashed the check and will roll it over in a few months. What do we do with the 1099R form when filing our taxes for 2020?

[macuser_22]

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@LaurenG1020 wrote:

My husband left a job last year 2020, so they sent him a check for his 401K. We received a 1099R regarding this money.

We have not cashed the check because he is going to roll it over into a 401K at his new job. He is not eligible to roll it over until June of this year, though. So we have not cashed the check and will roll it over in a few months. What do we do with the 1099R form when filing our taxes for 2020?

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If you received a check made out to you then any rollover had to be within the 60 day time limit from the issue date of the check or it is not eligible for rollover.

It should have been rolled to a Traditional IRA within 60 days and then the IRA could be rolled to a new 401(k) plan.

[LaurenG1020]

My husband just clarified that ADP has the funds from the previous 401K, but it will not be deposited into his new 401K until it starts in June. His current employer told him not to cash the check since this new employer partners with ADP. So since the funds are held at ADP currently and will go directly into his 401K in a few months, should we not enter the 1099R when filing our taxes? Or still enter it, even though we're not cashing it out and it will go to his new 401K?

[macuser_22]

Is the check made out to him or the 401(k) plan?

What code is in box 7 on the 1099-R?

[LaurenG1020]

It was made out to the 401(K) Plan. The code in box 7 is G.

[macuser_22]

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@LaurenG1020 wrote:

It was made out to the 401(K) Plan. The code in box 7 is G.

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OK. The 60 day rule does not apply to direct trustee-to-trustee rollovers (Code G), but to report it on your tax return as a rollover, it should have actually happened or you are certifying to a rollover that has not occurred.

Since you said June then you do not know if unforeseen circumstances might prevent it from occurring.

Personally I would not file until the rollover actually happens or you might be filing  a false tax return..    You can file for an extension to file before Oct 15, 2021, but any tax due must be paid by April 15.

(That is one of the reasons that extensions exist - so you can have all the facts prior to filing.)

[LaurenG1020]

My husband says he is 100% sure that the rollover will occur once June comes. He is just not eligible to open the 401K at his new company and rollover the previous until he has been there until June.

[macuser_22]

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@LaurenG1020 wrote:

My husband says he is 100% sure that the rollover will occur once June comes. He is just not eligible to open the 401K at his new company and rollover the previous until he has been there until June.

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Then go ahead and report it if he already has the job.     Because the receiving 401(k) plan does not report anything to the IRS, recently the IRS had been sending letters asking for proof that the rollover actually occurred such as a statement from the plan that shows the deposit.      Those letters are not usually sent prior to the close of the tax year, after Oct or the next year, so you should be okay by then.

[LaurenG1020]

Thank you for your assistance! I appreciate it. I'll go ahead and report it.