Rollover from retirement fund to new IRA

MNH · ‎May 31, 2019

I closed out my retirement fund from a former employer and opened a new IRA elsewhere. Do I still need to report this distribution as income even though it went into a new retirement account?

AndreaG · ‎May 31, 2019

It depends. If you rolled it over from your company's retirement plan and put it into a Traditional IRA, it is NOT taxable but it would still have to be reported. You will receive a 1099R to report this distribution on your tax return. If you rolled the money over from your company's retirement plan into a Roth IRA then it would likely be taxable because Roth contributions are taxed, whereas for most company retirement plans, the contributions are tax deferred.

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AndreaG · ‎May 31, 2019

It depends. If you rolled it over from your company's retirement plan and put it into a Traditional IRA, it is NOT taxable but it would still have to be reported. You will receive a 1099R to report this distribution on your tax return. If you rolled the money over from your company's retirement plan into a Roth IRA then it would likely be taxable because Roth contributions are taxed, whereas for most company retirement plans, the contributions are tax deferred.