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New Member
posted Jul 6, 2023 9:24:22 AM

I transferred some 401k funds to an unsheltered account, but meant to put them in my Roth. Can I just move them there now? (It's been less than 60 days.)

Wasn't sure if I have to explain anything to the IRS. Do I? Thanks.

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2 Replies
Level 15
Jul 6, 2023 10:13:45 AM

Yes, this would be considered an indirect rollover.  Make sure you tell the Roth IRA custodian in advance what you are doing, so they don't code the money as a regular contribution.  

 

At tax time, you will get a 1099-R from the 401k custodian.  Turbotax will ask what you did with the funds.  You will indicate you rolled them over to a Roth IRA within 60 days.  If this was a pre-tax 401k, the rollover is also considered a conversion and will be taxable.

 

Over the next months, the IRS computers will be checking to see that your Roth IRA reports a rollover contribution matching the 401k withdrawal.  As long as they see that, there won't be any problems.

Level 15
Jul 6, 2023 11:43:06 AM

If any portion of the distribution from the 401(k) was in cash and taxes were withheld, you'll need to substitute other funds to be able to complete the rollover of the entire gross amount.  Line 5b of your 2023 Form 1040 will show the ROLLOVER notation to indicate that the distribution was rolled over.