DB Pension Direct Rollover to Roth IRA with 1099-R and 5498 in Different Years

[ds18881]

Hi,

I did a direct rollover of my defined benefit pension plan to a Roth IRA at Fidelity in Dec 2023, but because of issues with the institution transferring the funds, the funds didn't hit the Fidelity Roth IRA account until Feb 2024.

I just realized that I received a 1099-R for 2023 with code G, same amount in Box 1 and Box 2a, and Total Distribution box check in Box 2b, and no amount in Box 4. But I did not receive a 5498 from Fidelity yet because the funds hit the account in 2024.

I already filed my taxes and understand I may need to amend, but do I file the amendment for this year? Or do I wait until 2024 taxes once I also receive the 5498?

[dmertz · Accepted solution]

This Form 1099-R should have been reported on your 2023 tax return.  If the amount from box 2a was not included on line 5b of your 2023 tax return, you must amend.

You should not delay amending since doing so will only cause you to have to pay more in interest and late payment penalty.  Since the IRS will not yet have the 2024 Form 5498 from Fidelity reporting the rollover to the Roth IRA, your explanation required to be included on Form 1040-X will suffice.  The IRS will bill for the interest and late payment penalty on the balance due that you'll be paying with the Form 1040-X.