I have a 1099-R from 2017 but didn't cash out my IRA until 2018 why do I have a 1099-R?

[macuser_22]

What code is in box 7?
Is the IRA/SEP/SIMPLE box checked?

[VolvoGirl]

Did you ask the issuer?

[candmccaff87]

The code in box 7 is G

[candmccaff87]

No I haven't contacted the issuer. They are currently closed.

[macuser_22]

A code G indicates a direct rollover.  Did you have a retirement account such as a 401(k) rolled into an IRA?

[candmccaff87]

It was an ESOP account the rolledover to an IRA. It was frozen for sometime once the company sold all the shares were rolledover into an IRA account. I cashed out in January of 2018. When I cashed out i have 30% taken out. I'm just worried this is going to make us owe on our taxes.

[macuser_22]

The rollover 2017 1099-R that you must report is not taxable.  The distribution will be taxable next year when you get the 2018 1099-R a year from now.

[candmccaff87]

Okay I understand. So with that said it shouldnt effect my tax return? I just need to report the 1099-R? Thank you for all your help also... 🙂

[macuser_22 · Accepted solution]

Yes.  Just enter the 1099-R.  The code G will make it a not taxable rollover.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

[candmccaff87]

Thank you for all your help.