topic Re: IRA rollover in Retirement tax questions

IRA rollover

stevevest — Mon, 09 Mar 2026 05:49:18 GMT

I received a 1099-R ($3144.00) from Fidelity Investments. I put $7000.00 into another Fidelity IRA account and received a Form5498 from them. Can I claim the $3100 as part of the $7000.00? The $3100 never had tax deducted prior to distribution.

Re: IRA rollover

Opus 17 — Thu, 17 Feb 2022 20:20:26 GMT

I am confused by your question, you may also be confused.

You can make IRA contributions up to $7000 (if you are over age 50). You must also have compensation from working.

A rollover is not considered a contribution and is not part of your $7000 annual limit. If you did a direct rollover (direct from plan A to plan B) then enter the 1099-R and when asked what you did with it, select that you rolled it over to another qualified account. It's perfectly OK to have a $3144 rollover from plan A to plan B and also $7000 of new contributions to plan B, because rollovers are not counted in your contribution limit.

If you received a check from plan A, that is considered an indirect rollover. You had 60 days to contribute it to plan B, but you must tell plan B that it is a rollover when you send them the money. They may have a special form for you to fill out. If you received a check for $3144 from plan A, and deposited $7000 into plan B, you can treat it as a $3144 rollover and $3856 of new contributions, as long as you completed the rollover within 60 days.

If you did not tell plan B it was a rollover, or if you waited more than 60 days, then you don't have a rollover. You have a taxable withdrawal from plan A, and $7000 of new contributions to plan B. You will also owe a 10% penalty for early withdrawal from plan A unless you are over age 59-1/2.

Re: IRA rollover

JohnB5677 — Thu, 17 Feb 2022 20:21:47 GMT

Please clarify your question.

Was the 1099-R for $3,144, or was it a larger amount?
You should indicate in the interview that a portion of the 1099-R ($7,000) amount was rolled into another qualified account.
You do not have to post anything on your tax return for the 5498 but keep it for your records.
What was the $3,100?
- Was it a nondeductible contribution to the retirement account?
- If so it should be listed on the 1099-R

Re: IRA rollover

dmertz — Thu, 17 Feb 2022 20:49:04 GMT

I interpret this as being a $3,144 distribution from some kind of retirement account, maybe an IRA, and an independent new contribution of $7,000 to an IRA. As it stands, no, the $7,000 deposit is not a rollover of any part of the $3,144 distribution.

If the $7,000 deposit was not made within the 60 days following the receipt of the $3,144, nothing can be done to change any part of the $7,000 to be a rollover of any part of the $3,144. However, if the $7,000 deposit was made within those 60 days, you can potentially contact Fidelity to correct the record of the $7,000 deposit to show that it was a rollover of $3,144 plus a new contribution of $3,856, if it's of any benefit for you to do so.