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kroneous
New Member

My wife quit her job and her 401K got rolled over to an IRA. however instead of a direct rollover they sent her the check which she then took to the bank the following day. do we need to report that o

 
3 Replies
dmertz
Level 15

My wife quit her job and her 401K got rolled over to an IRA. however instead of a direct rollover they sent her the check which she then took to the bank the following day. do we need to report that o

Yes, this is required to be reported on the tax return as a rollover.  The plan has until January 31 to make the required Form 1099-R available to your wife.

MSoren53
New Member

My wife quit her job and her 401K got rolled over to an IRA. however instead of a direct rollover they sent her the check which she then took to the bank the following day. do we need to report that o

In reference to above question and answer, we have a 1099-R for the amount of distribution, indicated as a total distribution, where or how do i indicate it went into an IRA and not pay taxes on this amount?

 

macuser_22
Level 15

My wife quit her job and her 401K got rolled over to an IRA. however instead of a direct rollover they sent her the check which she then took to the bank the following day. do we need to report that o


@MSoren53 wrote:

In reference to above question and answer, we have a 1099-R for the amount of distribution, indicated as a total distribution, where or how do i indicate it went into an IRA and not pay taxes on this amount?

 


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 under My Account) 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.

If this was a rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account). The screen will open up with choices of where it was moved.

(If box 7 has a code “G” it will automatically be a trustee-to-trustee rollover).

[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.]

It will show as income on the summary screen which shows gross income, not taxable income.

The income will be reported on line 4a or 4c on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.

The taxable amount will go on line 4b of 4d.  In the case of a rollover, that amount will be zero.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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