Traditional IRA

Forum|Forum|4 years ago
January 26, 2022
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Best answer by mtzunum

My 401k was moved to a traditional IRA. Company where I had 401k no longer in business. Do I have to report the withdrawal of the entire money? Withholding State tax were taking.

ErnieS0

Level 15

We'd love to help you. Can you clarify your question about traditional IRAs?

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mtzunumAuthorAnswer

Level 2

My 401k was moved to a traditional IRA. Company where I had 401k no longer in business. Do I have to report the withdrawal of the entire money? Withholding State tax were taking.

AmyC

Level 15

The rollover to a traditional IRA would have no tax consequence, rolling into the same pre-tax fund type. Only withdrawals will trigger a tax. You will receive a 1099-R tax form and it will have a code G for the distribution. This lets the IRS know that it was rolled over. What state do you live in that wanted taxes? Some states tax 401k through the year, most don't. You will have income equal to the state taxes, if you did not make up the difference.

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