It might, it depends what you did with the funds. When you move money from one retirement plan to another, you'll receive form 1099-R (even though you didn't get cash).
When you enter this in your taxes, your tax meter will usually go up, but when you answer the questions that follow, it can go back down. The reason it can affect your income is because of how these two types of retirement plans work:
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Traditional IRAs (including 401(k)s from an employer) - You get a tax deduction for your contributions to these types of plans, but when you take withdrawals in retirement, the earnings are taxable.
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Roth IRAs - You don't get a tax deduction now, but when you withdraw in retirement, the earnings are taxable.
So, if you moved your retirement from a work 401(k) to a Traditional IRA, there most likely won't be any tax. However, if you moved from a Traditional IRA or a work 401(k) to a Roth IRA, there will usually be taxes on the amount (but you aren't taxed later on).
Hopefully, that addresses your situation. If not, there are a few more complicated things to consider:
- The reason I say *usually* is because if your income exceeds certain amounts, you won't get a tax deduction for Traditional IRAs. Instead, you have non-deductible contributions, which can offset Roth taxability.
- When you have a 401(k), your employer contributes your pay directly to the retirement plan so you don't actually get a deduction on your return. You can see this on your pay stub, if applicable.
Let me know what you did, if it's still not clear!
