I took a distribution from pre-tax money in my 401k in December 2020. The money was sent directly to a trustee to open an IRA but the IRA was not opened until January 2021. Are there any tax implications for 2020? Do I need to file anything about the transfer with my 2020 tax return?
Yes. You must report the 1090-R for the distribution. A code G in box 7 is automatically a rollover. Say no to the two Roth questions and then it is automatically a rollover to a Traditional IRA.
That it spanned years is immaterial.
I have a 401K rollover and have received a 1099R. This was rolled over into an IRA. No tax consequences. However, I have to report the amount on the 1099R with code G, yet the amount shows on my taxes as income. Why?
It will show as income on the summary screen which shows gross income, not taxable income.
The IRS requires reporting all income on a *income* tax return - taxable and not-taxable.
The income will be reported on line 4a(for IRA) or 5a and 4b(for IRA) and 5b on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.
The taxable amount will go on the 1040 line 4b or 5b. In the case of a rollover, that will be zero.
A non-taxable rollover will have not affect.