Pension Rollover by the company

[dcgunder]

My pension was rolled over from the company I worked for to another company as an annuity. I personally did not roll it over. Do I have to report the 1099-R?  When I entered into TT it just asks if it was rolled into some type of IRA.  It wasn't.  How can I prove it was rolled over?

[BillM223]

Are you saying that you did or did not receive a 1099-R? If you did receive a 1099-R, you must enter it on your tax return or the IRS will wonder what happened to it (the IRS has already gotten a copy of it)

Often (even usually), a company does not issue a 1099-R for a rollover, since it is not a taxable event.

If I am not mistaken, TurboTax in the 1099-R interview said "to an IRA or other retirement account". If the second company says that the annuity is a retirement account (it might not be), then this is an "other retirement account" in the phrase above. 

Check that box (or circle) and the amount of the distribution will be removed from your taxable income.

[dcgunder]

I did receive a 1099-R. When I entered it, the first question asks if it was rolled over to designated ROTH 401 (k) or 403 (b) account.  I marked No.  The next question asks if it was rolled over into a ROTH IRA account.  I marked No.  There are no more questions about what kind of account it was rolled over to.  Just concerned if I will have to prove how it was rolled over.  The second company it was rolled over to just says its's an annuity in the information I received from them.  The rollover was completed a few months before the year ended, so I have been receiving my pension check from the new company.

Thanks.

[BillM223]

What was the code on the 1099-R? Somehow TurboTax thought that a Roth account was involved.

[dcgunder]

The code was G.

[BillM223 · Accepted solution]

OK. The 1099-R instructions for G state (note that these are the instructions to the pension administrator, not you):

Use Code G for a direct rollover from a qualified plan, a section 403(b) plan, or a governmental section 457(b) plan to an eligible retirement plan (another qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA). See Direct Rollovers , earlier. Also, use Code G for a direct payment from an IRA to an accepting employer plan, for IRRs that are direct rollovers, and to report designated Roth nonelective contributions and designated Roth matching contributions for the year in which the contributions are allocated.

Note that G is used only for direct rollovers (trustee to trustee without you being an intermediary), so when TurboTax and the IRS see this, they will realize that it is a tax-free event.

So, yes, you must enter it, but when you are done, look at your 1040 line 5b and make sure that the box 1 amount is not included.

[dcgunder]

Thanks for your help.