401(k) rollover

[5Apple]

I received a Form 5498 regarding rollover from a 401(k) to a traditional IRA.  This was a direct transfer, from one brokerage account to another, I never received any funds. Is this rollover reportable?  If so, where?  Many thanks.

[JulieS]

No, you don't have to report your rollover unless you get a 1099-R form. When it is a direct transfer, they don't usually issue a 1099-R form. 

Form 5498 not directly reported on your tax return. It just shows your contributions, rollovers and RMD. Keep it for your records. 

[5Apple]

Julie, thanks for the reply.  While I have not gotten a Form 1099, my concerns is that when I go to the IRS website, the IRS Interactive Tax Assistant says I do need to report the rollover.  It says "Include the total amount distributed on the "Pensions and Annuities" line of your tax return.  Write the word "Rollover" in the margin net to the "Taxable amount" line."  

This makes me nervous about not reporting the rollover.  

[5Apple]

See Topic No. 413 on the IRS website

[JulieS]

You can ask the company that distributed the money that was rolled over to issue you a 1009-R. If they refuse, I am not sure how you would report it without the form. 

[5Apple]

Julie - Again, thanks for your reply.  If I understand correctly, you are drawing a distinction between info on a Form 1099-R, which needs to be reported, and Form 5498 which you suggest does not need to be reported. In helping to understand this distinction can you point me to where the IRS says that information on the Form 5498 does not need to be reported?  The IRS topic I mentioned earlier doesn't mention an exception for information on a Form 5498.  Rather it says rollovers need to be reported, even if not taxed. That is why I am struggling with the contrary view noted on Turbo Tax. 

[SusanY1]

Form 5498 reports a variety of data points to the IRS about IRA contributions.  Form 1099-R reports the distributions (including distributions that are rolled over, which must be reported).  

The data that is reported on a tax return comes only from 1099-R, the form 5498 is for informational purposes only.  

Ultimately, a rollover should appear on both forms, but your income tax return is only concerned with distributions (in this case), not contributions, so it's the 1099-R that is used for rollovers.  

Many companies have begun paperless distribution of 1099-R and it is possible that your rollover distribution form is in an online portal at your former 401(k). 

It is essential to track down that form in order to report your rollover distribution.  Your 1099-R should have a code of "G" in Box 7 which triggers the rollover treatment on the tax form.  It is also necessary to match the form on IRS records with the payer's tax ID (the 401k), not the receiving company (who would be the one that sent form 5498.)

Please reach out to your 401(k) provider to find out how to get a copy of your 1099-R.  You must have it to properly complete your tax return.

[dmertz]

A rollover from a 401(k) to an IRA is required to be reported by the 401(k) plan on a Form 1099-R that is required to be entered into TurboTax.

[5Apple]

Thanks for all the help.  What I am taking away from all this is that the rollover from the 401(k) to the traditional IRA needs to be reported - advice consistent with the IRS website - and that order to report the rollover, the 401 (k) plan should provide a form 1099-R.   Again, thanks for the help.