Retirement 401k roll over

[drwalter]

I rolled over my work 410K and pension to a new Ameriprise account and want to know if that information should be documented in my taxes. I did not take any cash out, just moved to new financial advisor/company.

[MonikaK1]

Check with the financial institution that moved your 401K to determine whether a Form 1099-R was issued. If a Form 1099-R is issued, you will need to report the information from it on your tax return. 

The 1099-R will have a code in box 7 that indicates it was a direct rollover and as such it will not be taxed. 

See these instructions from the IRS for more information.

[dmertz]

These rollovers are required to be reported Forms 1099-R by the 401(k) and pension plan, and these Forms 1099-R are required to be reported on your tax return for the year in which these rollovers were done.  If these happened in 2022, you should already have the Forms 1099-R that need to be entered into TurboTax.  If these rollovers occurred in 2023, the 2023 Forms 1099-R that you receive next year must be reported on your 2023 tax return.

[Carl]

Typically, when doing a trustee-to-trustee transfer from one tax deferred retirement account to another tax deferred retirement account, a 1099-R is not issued and nothing needs to be reported. However, when you do something like transfer from a traditional 401(k) to a self-directed IRA, the 1099-R is required. You just enter the 1099-R exactly as printed. In later screens the program will ask you what you did with that money. If you indicate you "rolled it" to an IRA, then none of it will be taxable. If you indicate you rolled it to a ROTH IRA, then all of it will be taxable and no penalties will be assessed.

Also, if the issuer of the 1099-R shows any withholding on the amount, it's up to you to make up the difference for the withholding in the new account. Otherwise, that withholding is considered a taxable withdrawal that may be subject to the 10% penalty if the transaction occured before the qualified retirement age.

[dmertz]

"Typically, when doing a trustee-to-trustee transfer from one tax deferred retirement account to another tax deferred retirement account, a 1099-R is not issued and nothing needs to be reported."

@Carl , that statement is too broad.  It should read:   When doing a trustee-to-trustee transfer from one IRA to another IRA of the same type, a 1099-R is not issued and nothing needs to be reported.

[Carl]

that statement is too broad.

I agree, as I thought so at the time I wrote and posted it. Just couldn't find a clearer way to word it at the time. Thanks for providing more precise clarity.