I transferred money from my old 401(k) to my new 401(k). I mistakenly told my old 401(k) partner that I was a non-resident alien (I always get them mixed up, immigration and tax purposes). Digging around, I have found that the money transferred shouldn't be taxable, but I still have to file a form 1099-R and prepare a substitute Form 4852. I have done so, but I have some additional questions:
1) Since no tax should be deducted, can I just put $0.00 under "taxable amount"?
2) What distribution code should I use? I assumed it would be type G, but I just want to confirm: In order to transfer the money from the two retirement plans, the first one sent me a check payable to my new 401(k) retirement plan. I received the check, and mailed it to my new 401(k). I never took actual custody of the funds, but I did receive a check to deposit. Would this still qualify as a direct transfer? If it's an indirect, what distribution code should I use?
3) Are there any other important boxes in form 1099-R I should pay attention to?
Thank you so much for your help in advance! Especially considering that taxes are due tomorrow :(
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@salberti77 , I am totally confused here.
(a) are you US citizen/Resident( Green Card) / Resident for Tax purposes? What visa are you on today, during 2019 and earlier; When did you enter the USA and with which visa; Which country are you from; Are you married to a US citizen or a Resident
(b) If you were a Non-Resident how did you get to contribute to a 401(k), when did you transfer funds from your original 401(k) to the new 401(k)
I think perhaps you should consider filing an extension so you can resolve this completely ---- Don't know if TurboTax has been modified with the new date of 07/15/2020 . But if you do not owe anything then delaying a few days would not hurt, even if you do not file an extension request ( ideally you should but it is automatic )
(a) I have been on an H1B visa since 2015 and filed taxes as a resident since then, it was my mistake that they gave me the wrong form :(
(b) I am not a non-resident, I am a resident for tax purposes. I just get confused since I am an H1B holder, which is non-immigrant status.
The direct transfer isn't taxed, but I do owe money to the IRS, so I'd rather file this on the deadline if possible 🙂 But thank you for the suggestion! I did consider filing an extension to resolve the problem.
I called the 401(k) company and they said they wouldn't issue form 1099-R, so filing an extension would just buy me time.
@salberti77 , alright, now I understand the situation :
(a) you are a RESIDENT and is treated as such . You are not a permanent Resident ( Green Card)
(b) all you have to is fill out the form 4852 ---- block 8 ( from 1099-R ) -- you enter the gross distribution in line a. ; the distribution code G in line j. If this was a total distribution then click the box d.
That is all -- this should cause no taxes for you. This is direct transfer because the check was in the name of the new 401(k) trustee and hopefully you deposited this within 60 days . There also should have been another 1099 from the receiving trustee showing that they have received with no distribution ( they don't always do it ) but there is not reporting required on your return.
If you are using desktop version of TurboTax , you can do this filling out of form 4852 in the forms mode, else search for form 4852 and then jump to it -- that should also work in the online version.
Good Luck
thank you!
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