I have a traditional IRA rollover but did not receive a 1099R to report it. How do I handle this? Where exactly in the program is this handled?

[dmertz]

No.  The fact that you received the distribution in 2020 before the due date of your 2019 tax return (and you choose not to roll it over) requires that the distribution be present on line 4 of your 2019 Form 8880.  You must amend if your filed Form 8880 does not show that.  The fact that the distribution is taxable on your 2020 tax has nothing to do with this.  This distribution affects both your 2019 and 2020 tax returns.  It will also affect your 2021 and 2022 tax returns if you would be eligible for this credit in those years.

[matt666666]

I think I had a choice to transfer or withdraw it. Since I already withdrew it with 20% taxes withheld, would I still need to amend my 2019 taxes if I placed the payment into a new 401k or IRA? However, another 20% would probably be deducted from it when I withdrew it in the future (that would be a total oss of 40%)? I don't know anything about 401k or IRAs so I'm not sure how to create one on my own. My former employer automatically set it up for all employees. 

When I amend my 2019 1040 form, everything will the same? The only form I need to edit is the 8880 form? Do you know how I can find out if I still qualify for the Saver's Credit? I use automated tax software that calculates it for ne, but amended forms can't be submitted electronically so it won't be automatically calculated for me. 

[dmertz]

"would I still need to amend my 2019 taxes if I placed the payment into a new 401k or IRA?"

No, as long as you roll over the entire box 1 amount.

The 20% withheld for taxes will be credited on your 2020 tax return, it's not gone.  By doing the rollover and avoiding the income tax and penalty liability on your 2020 tax return, you'll get a larger refund (or lower balance due) when you file your 2020 tax return.

There are many financial institutions that offer traditional and Roth IRAs.  I suggest finding one with low or no fees relative to the amount you roll over.

If you don't roll over the distribution, the point of amending your 2019 tax return is that it will not be the same because Form 8880 must change.  To find out if your credit is reduced or entirely lost, prepare the amendment.  Doing so will cause the credit to be recalculated; the software can't provide forms for mailing without doing the calculation.  If you find that that credit remains unchanged (because the amount of your retirement contributions for 2019 were more than $2,000 greater than the amount of your recent distribution, which seems unlikely given the information you have already provided).

[matt666666]

When filling out Form 8880, I don't know which amount to put. The total amount without the 20% taxes withheld or the check payment amount I received with the 20% taxes withheld?

[dmertz]

The total amount, the box 1 amount.

[matt666666]

Thanks. Since I elected to withdraw instead of transfer my 401k, how will the IRS know that I deposited that cashed check into another savings plan? They might know I did if I initially transfered it. 

[dmertz]

If you deposit the money into an IRA as a rollover, the IRA custodian will issue a Form 5498 reporting the receipt of the rollover.  If you roll the funds over to another employer's plan like a 401(k), you must include an explanation statement with your tax return to indicate that you rolled it over.  In either case your 2020 tax return must include the ROLLOVER notation on line 4d, which TurboTax will do automatically when you indicate to TurboTax that you rolled the distribution over to an IRA or to a 401(k).

[matt666666]

So, if I deposited money into an IRA account, I wouldn't need to amend my 2019 taxes?

And I'm not sure if I would be taxed for a Roth IRA (need to amend 2010 taxes), but not a Traditional IRA based on the information below.

"You would roll your 401(k) money to a traditional IRA, and then convert to a Roth. Keep in mind that when moving regular 401(k) or IRA money to a Roth, generally income taxes are due at that point."

[GREYvee]

I had a similar question regarding your response here, that perhaps you can help me with. I had my work savings plan rolled over to an IRA in July. I only received a copy of the 5498 form but no 1099-R and I that was all that was available at the Financial Website. Basically the money was rolled over in the same institution and I have not invested it. So it has not been distributed, invested nor have I made  interest on it. My understanding from what I have read is that the 5498 is the form the institution uses to report to IRS....that it is not taxable but needs to be reported while filing. I guess I am having a hard time understanding where it is noted. There are all these different places but they say only fill out based on 1099-R. I assume because it's currently not reinvested, stagnant so to speak, it is not doing anything other than having it's own value. So basically I'mjust asking, do you know where I should add that amount? Thanks

[dmertz]

GREYvee, perhaps your employer's plan was a SEP or SIMPLE IRA, in which case the movement of the account would be a simple non-reportable trustee-to-trustee transfer of the account (and generally would have not been necessary to move), in which case the Form 5498 should also not show it in any of the boxes except box 5 (FMV).

If the employer plan was a 401(a), 401(k), 403(b), 457(b), ESOP or the federal TSP, reporting on both Forms 1099-R and 5498 is required and you must to contact the plan to obtain the missing Form 1099-R.  Other than to inform you of the FMV and any requirement to take an RMD, the Form 5498 is mainly used to confirm to the IRS that you made a contribution to the IRA, in this case a rollover contribution.  It is not needed for preparing your tax return.  Only the Form 1099-R is reported on your tax return, along with answering the questions to indicate what you did with the distribution.

[GREYvee]

I really appreciate the reply and the help/info. I checked and it was a 403(b) plan that I had and is now an unvested IRA. There are very few lines filled in on the 5498 and the Fidelity website had that listed as the only tax form listed. I'll look at that tomorrow again to see what lines it is. Perhaps, I need to contact Fidelity to get the 1099-R then. I was so confused by the term distributions, since it is used to mean money paid out to you, so I didnt think it was the same as being straight rolled over. Plus, I was confused by having an IRA that I have yet to reinvest. 

So Ik also assuming in turbo tax when it asks about rollover IRA distributions I should say yes?

[dmertz]

Yes, by definition in the tax code, this is a distribution from the 403(b).  In this context, "distribution" simply means that the money left the employer plan and doesn't imply anything about what was done with the money upon the money leaving the plan.  A Form 1099-R is required to have been issued for any distribution.

[davidsandler]

Thank you for clarifying this.

  Saved me a lot of time running in circles.