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Level 4

Solved

IRA Contribution

Forum|Forum|6 years ago
June 17, 2020
1 reply
8 views

Dear Friend,

In Nov 2019, my father made a $16,500 contribution for 2018 to an existing Traditional IRA. The Plan Type is 457B. On the Nationwide Form DC-4261 (09/2018), it is noted that: "Are you rolling over roth assets? No." Also, on the Nationwide Form DC-4261 (09/2018), a statement read: "Total Account Balance is $99,000."

My question is where on 1040 SR should I show

Since then my father passed away in Feb 2020, and I am trying to pick up the pieces for my elderly mother.

So, any help you can provide is greatly appreciated.

Thank you,

Best answer by macuser_22

@jjf2008 wrote:

Dear Friend,

In Nov 2019, my father made a $16,500 contribution for 2018 to an existing Traditional IRA. The Plan Type is 457B. On the Nationwide Form DC-4261 (09/2018), it is noted that: "Are you rolling over roth assets? No." Also, on the Nationwide Form DC-4261 (09/2018), a statement read: "Total Account Balance is $99,000."

My question is where on 1040 SR should I show

Since then my father passed away in Feb 2020, and I am trying to pick up the pieces for my elderly mother.

So, any help you can provide is greatly appreciated.

Thank you,

Al

Your question is not clear. IRA contributions cannot exceed $6,000, or $7,000 if age 50 or older.

Is this a contribution or a distribution?

Do you have a 1099-R? What code is in box 7?

Was it a retirement distribution that was rolled into an IRA?

A 457(b) plan is NOT an IRA.

Contribution to a 457(b) plan would be reported on his W-2 form by his employer in box 12 with a code G - it is not reported anywhere else.

macuser_22

Answer

Alumni - Champ

@jjf2008 wrote:

Dear Friend,

In Nov 2019, my father made a $16,500 contribution for 2018 to an existing Traditional IRA. The Plan Type is 457B. On the Nationwide Form DC-4261 (09/2018), it is noted that: "Are you rolling over roth assets? No." Also, on the Nationwide Form DC-4261 (09/2018), a statement read: "Total Account Balance is $99,000."

My question is where on 1040 SR should I show

Since then my father passed away in Feb 2020, and I am trying to pick up the pieces for my elderly mother.

So, any help you can provide is greatly appreciated.

Thank you,

Al

Your question is not clear. IRA contributions cannot exceed $6,000, or $7,000 if age 50 or older.

Is this a contribution or a distribution?

Do you have a 1099-R? What code is in box 7?

Was it a retirement distribution that was rolled into an IRA?

A 457(b) plan is NOT an IRA.

Contribution to a 457(b) plan would be reported on his W-2 form by his employer in box 12 with a code G - it is not reported anywhere else.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

jjf2008Author

Level 4

Dear Champ macuser_22 Level 15:

Okay, You are correct! I didn't want to give the real figures used on the IRA, in case Nationwide puts two-and-two together and figured out the account owner is. They send out the hounds to make unsolicited telephone calls. At this point, I decided, "what the heck?", let them call.

Anyway, Champ macuser_22, here we go:

The existing Traditional IRA had a value $39,053.26 on 12/31/2019. A $6,500 contribution was made in 2019 for 2018. In Jan-2020, the IRA was transferred from SunTrust Bank to Nationwide.

You ask: Is this a contribution or a distribution?

Reply: Contribution existing, Traditional IRA.

You ask: Your question is not clear.

Reply: You always say that... ...so, I have tried to fix that issue. You be the Judge.

You ask: IRA contributions cannot exceed $6,000, or $7,000 if age 50 or older.

Reply: You are correct. A $6,500 contribution was made in 2019 for 2018. He was 69 years and 8 months old at his passing this year.

You ask: Do you have a 1099-R?

Reply: No, I do not have a 1099-R for this item.

You ask: [On Form 1099-R] What code is in box 7?

Reply: SunTrust Bank do not provide a 1099-R for this item. Should SunTrust Bank provide a 1099-R, if we did not cash- out or receive any monies from the IRA? Should the IRA be listed on 2019 Form 1040 and where?

You ask: Was it a retirement distribution that was rolled into an IRA?

Reply: Honestly, I do not know. Can you give me any advice that would help in determining whether it is and how to handle it.?

Here is some information:
On January 17, 2020, the IRA was transferred from SunTrust Bank to Nationwide. My father was working very hard and was adamant about getting the IRA transferred by 12/31/2019. However, he was unsuccessful in meeting that date. It was 17 days after that, before it was transferred. Since he has passed away, I cannot figure out why he wanted to get the IRA transfer competed by 12/31/2019. I call on your many years dealing in this Discipline for help. I know you do not have a crystal ball, but I would appreciate your educated guess.

Here is some information from Nationwide: They are stating it as a "Traditional IRA" and "we want to notify you the asset rollover requested is effective as of January 17, 2020." The Fund Name: Nationwide Fix Account, Contribution Type: Rollover (Pre-Tax), Plan IRS Code: 457.

One of my concerns, is should SunTrust Bank provide a 1099-R, if we did not cash- out or receive any monies from the IRA? Should the IRA be listed on 2019 Form 1040 Tax Return?. The IRA was with SunTrust during the entire year of 2019.

Here is information, from the last Bank Statement ending 12/31/2019, that may be of help:

Balance as of 12/31/2019: $39,053.26

2018 Contributions: $6,500.00

2019 Contributions: $0.00

Non-Reportable Transfers: $0.00

Reportable Rollovers: $0.00

Interest Pay YTD: $18.76

Withdrawals/Distributions: $0.00

Balance 12/31/2019: $39,053.26

Federal Tax Withheld YTD: $0.00

Penalties Paid YTD: $0.00

State Withheld YTD: $0.00

Fair Market Value: $39, 053.26

Champ macuser_22, any help you can give me is greatly appreciated. If you need anything else, please let me know.

Respectfully yours,

macuser_22

Alumni - Champ

"A $6,500 contribution was made in 2019 for 2018."

A contribution in 2019 *for* 2018 must be reported on the 2018 tax return, not 2019 either as a deductible contribution or a non-dedictible contribution reported on a 8606 form.

"In Jan-2020, the IRA was transferred from SunTrust Bank to Nationwide."

A transfer form one trustee to another trustee when the money is not sent to the account owner does not require a 1099-R, but some trustees send one anyway. If not 1099-R was issued then there is noting to report on the 2019 tax return.

"in case Nationwide puts two-and-two together and figured out the account owner is. "

Nationwide should be notified of the death immediately so that they will treat the IRA as inherited by the named beneficiaries or your fathers estate if there was no named benificuary(s).

The moment that he died, the IRA was no longer his, but belongs to the benificuary(s).

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**