I got a 1099-R because of an IRA direct rollover, questions about reporting it?

[Macy522]

As mentioned, I got an 1099-R because IRA money was directly rolled over into another qualified plan. Here is why I am confused about reporting it.

Box 1 says a gross distribution amount

Box 2a NO taxable amount its blank

Then I Just saw this on the side of form:

 the instructions say "Report this on Federal (income) IF box 4 shows federal income with held. 

My box 4 is blank.

No other taxes were withheld either.

So why was I ever given this 1099-R if I am not even suppose to report it on Federal State or City tax as income. Again it was a rollover, I didn't cash any money out? Can someone please expain?

[scalelady1994]

It is the law, whenever money from a retirement account moves, there has to be a trail.  Even for a direct rollover.  They should have put $0 in taxable, but as long as it is blank you are okay.  They should have put a G in box 7 signifying a direct rollover with no tax consequences.  You will see the amount under retirement on your return, but the amount that makes it over to the total will be $0.    

[Macy522]

Box 7 was   indeed G – Direct rollover of a distribution to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA

With that said, is it yes this information needs to be entered into taxes, or no do not enter in the information on the 1099-R at all, that is what I am trying to figure out. I asked in the first place because it literally said on the form to report it IF you had federal taxes taken out (box 4) but mine is blank.

[MarilynG1]

If your 1099-R has a Code G in Box 7, it is reporting a non-taxable rollover.

You are correct; in your case it is just 'reporting' since the IRS has a copy of the 1099-R.

In a 'trustee to trustee' rollover, sometimes a 1099-R is not issued, but usually it is, so we're just following the reporting requirement.

Here's more info on Reporting Non-Taxable Rollovers. 

[MarilynG1]

Definitely you would want to report it if you had Federal Taxes taken out (so you get credit), but that statement might appear on all the 1099-R's they issue; rollover or not. 

Can be confusing! 

[scalelady1994 · Accepted solution]

You will still need to put it on your tax return.  It will appear on line 5a but not 5b, which would be taxable. 

[Macy522]

Thank you, that is all I was trying to figure out! 

[Shakes0]

Hello I am using Turbo Tax online version and I received a 1099 R for my After Tax 401 contributions with Box 1 and Box 5 showing rollover amount and Box 7 showing code G for rollover. There is no taxable income reported in Box 2.

Now when I filed taxes with online version, it is correctly populating the rollover amount in box 5a on From 1040, but it is not inserting a text comment "Rollover" next to it.

My friend using a desktop version has the amount reported in Box 5a and 1040 form and a word "Rollover" right next to it. is this a bug in the online software and how can I be sure if turbo Tax is reporting my after-tax rollover to Roth correctly to the IRS?

Thank you

Shekhar

[GeorgeM777]

You are correct in that a rollover of the type you describe should have the word "Rollover" on line 5a of the Form 1040.  Did you import your 1099-R into TurboTax?  There is the option to manually enter your 1099-R information into TurboTax but knowing how you entered your 1099-R may help us better understand what took place. 

Also, did you see the page Tell us if you moved the money through a rollover or conversion?  If yes, did you choose the first option I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days).  

@Shakes0