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Level 4
posted Oct 2, 2023 1:00:08 PM

Transferring from one 401k to another - should it be reported?

Hi,

 

My 401K has been 'transferred". from one parent company to another parent company as a result of a spin off.    I understand this is a considered a "transfer" as the funds are transferred between the same type of accounts as opposed to a "rollover".     My questions are as follows:

 

- while I understand the "transfer" isn't taxable,  is it a reportable event on my tax return?

- relatedly, would a 'transfer" be reported on a 1099-R or some similar type of form?

 

Thanks Richard

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1 Best answer
Level 15
Oct 2, 2023 2:07:43 PM

These sorts of transfers are sometimes reported by the company as rollovers, or are sometimes done nonreportably.  If you receive a Form 1099-R reporting a rollover, you must report it on your tax return even though the income is not taxable.

2 Replies
Level 15
Oct 2, 2023 1:14:35 PM

It shouldn't be taxable.  You may get a 1099R next January for it.   It should have code G in box 7 for  direct transfer.   If you get a 1099R you need to report it.  

Level 15
Oct 2, 2023 2:07:43 PM

These sorts of transfers are sometimes reported by the company as rollovers, or are sometimes done nonreportably.  If you receive a Form 1099-R reporting a rollover, you must report it on your tax return even though the income is not taxable.