Rollovers - How to Report Gross Distribution Checks?

[bmfsfan]

Hello All,

If you receive a gross distribution check (representing the interest earned while a custodian processes a retirement distribution rollover), do you report this as an early retirement distribution?

My custodian said that they wouldn't be able to rollover these check amounts and I might as well just cash the checks (given they were smaller in nature, i.e.  <$30) and pay the tax, but I didn't receive any 1099 specifically related to these checks (only received 1099s for the aggregate rollover amounts prior to receiving the interest checks). Therefore, I wasn't sure how to account for these in TurboTax to accurately report.

Thanks in advance for your time and assistance!

[jtax]

When you enter (or import) the 1099-R's into TT, TT will ask you in the interview what you did with the money. Tell it you rolled over the amount you rolled over. The amount you didn't rollover will then be treated as income.

[bmfsfan]

Issue is the checks I received are dated early January 2024 so the custodian mentioned I wont receive tax forms for those checks until next year - therefore, should I just wait to report those checks until 2024? Thanks!

[jtax]

Sorry. my mistake for not reading more carefully. If the checks were issued in 2024, you received them in 2024, and you did not get a 2023 1099-R for them, then I would say yes, nothing goes on your 2023 return for them. You should get a 1099-R for 2024 (in early 2025).