Form 8606

[mayfung1]

I rolled over a portion of my 401(k) to an IRA and received a Form 5498.  It  stated I need to file a form 8606 in 2022 for the rollover.  In TurboTax, this is not considered a rollover, how do I include form 8606 as part of my tax return? 

[ErnieS0]

Your 401(k) administrator should provide you with a Form 1099-R if you moved money from your 401(k) to an IRA.

The rollover would be reported on that form and TurboTax would create Form 8606 based you the information and answers you provide in the 1099-R section.

Some companies will not send you a Form 1099-R but will make it available in a tax documents section of your account. Check with your 401(k) administrator.

[mayfung1]

Thank you.

I do have a 1099-R that showed the cash portion that I received, but it does not reflect the amount that was directly rolled over into IRAs.  The Form 5498 showed the amount of the 'rollover' as well as the FMV of the asset, amounts that are not part of the 1099-R.  Do I not need to report those?  

[DanaB27]

As Tax Expert ErnieS0 mentioned your 401(k) administrator should provide you with a Form 1099-R if you moved money from your 401(k) to an IRA. Please contact them.

If the code in box 7 doesn't indicate a direct rollover then you can indicate in the follow-up questions that it was rolled over to a traditional IRA:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
5. Continue answering the questions.

Please see Who Must File Form 8606 for additional information.

[fanfare]

You don't need Form 8606 unless you had after tax basis in your 401k.

@mayfung1 

[mayfung1]

@fanfare , @DanaB27 , @ErnieS0 :

Thank you for your responses.  Please let me expand on the background:

I took a 401(k) distribution after 59 1/2 in 2022. 

The bulk of the amount (amount X) was directly sent to to a traditional IRA, with a balance (amount Y) sent to me in the form of cash.  The amount X 'rolled over' into an IRA was not reported in a 1099-R, only the amount Y cash sent to me was reported in a 1099-R. 

I received a Form 5498 from the IRA for amount X with a note that I should file an 8606 - although I did not take a real distribution per se.  I have read somewhere that I only need to file 8606 when I take a real distribution as Form 5498 is traditionally sent in May, after the tax filing deadline. 

I have read the IRS instructions for Form 8606 as well as publications 590-A and 590-B.  I am still not 100% sure what I need to do.  

Please help!

[fanfare]

Based on what you said, I don't see any basis in your 401k,

therefore you don't need to file Form 8606.

Is the note separate from the 5498?

does the note say you had a basis in your 401k, and the amount?

@mayfung1 

[fanfare]

Is the note telling you to file Form 8606 for amount 'Y'  ?

@mayfung1 

[mayfung1]

@fanfare:

Thank you for your speedy responses. 

The Form 5498 only has amounts in box 2 for Rollover Contributions and box 5 for FMV of account. 

The statement that made me think I need to file is: 

"... you must file Form 8606 if during 2022 you received a non-taxable IRA distribution..... If you are required to file Form 8606, add the X amount to box 6 of the form...."

I want to correct my background information.  I did receive 2 different 1099-Rs, one for the X 'rolled over' amount and one for the Y cash sent to me. 

[fanfare]

the 1099 for X should be code G.

enter the 1099s as shown and CONTINUE.

basis or Form 8606 should not come up since your "IRA" box will not be checked.

@mayfung1