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New Member
posted Jan 14, 2024 5:58:59 PM

If I was laid off, and rolled my 401k into a Roth IRA, do I need to do anything on my taxes?

I did not cash out any of the funds

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1 Best answer
Level 15
Jan 15, 2024 4:52:49 AM

Regardless of the details, a rollover from a 401(k) is always reportable on your tax return, even if nontaxable.

 

A nontaxable direct rollover from the designated Roth account in the 401(k) to a Roth IRA would be indicated by code H in box 7 of the Form 1099-R.  A taxable direct rollover from the traditional account in the 401(k) to a Roth IRA would be reported with code G in box 7 and the taxable amount, usually the entire amount, in box 2a.  Only indirect rollovers are subject to the 60-day rollover deadline and would be reported with a different code in box 7 than the codes for direct rollovers.

2 Replies
Level 15
Jan 14, 2024 6:05:44 PM

You moved it to a ROTH?  Was the 401K also a Roth?   You will owe tax on the whole amount.  Did they take any tax withholding out of it?  You had to roll it into a Traditional IRA to avoid the tax.  Was it a direct transfer from the 401K or did you get a check and take it to the IRA?   You had 60 days to put it in the IRA.   You will get a 1099R for it.  

Enter a 1099R under

Federal Taxes Tab or Personal (Home & Business)

Wages & Income at the top

 

Then scroll way down to Retirement Plans and Social Security,

Then IRA, 401(k), Pension Plans (1099R) - click Start or Revisit

 

There are 4 boxes.  Be sure to pick the right box for the kind of 1099R you got.

 

If you are filing a Joint return be sure to pick which person it is for.

Level 15
Jan 15, 2024 4:52:49 AM

Regardless of the details, a rollover from a 401(k) is always reportable on your tax return, even if nontaxable.

 

A nontaxable direct rollover from the designated Roth account in the 401(k) to a Roth IRA would be indicated by code H in box 7 of the Form 1099-R.  A taxable direct rollover from the traditional account in the 401(k) to a Roth IRA would be reported with code G in box 7 and the taxable amount, usually the entire amount, in box 2a.  Only indirect rollovers are subject to the 60-day rollover deadline and would be reported with a different code in box 7 than the codes for direct rollovers.