Rollover IRA

[santhosh1987]

Hi,

 I moved my 401k from old employer to Rollover IRA last year or before that year and also have a 401k plan with new employer. Even today , i didnt touch Rollover IRA fund and also I didn't made any contributions to Rollover IRA.

Turbo Tax question:

1) Did you or your wife contribute to a traditional IRA or Roth IRA?

Should it be Yes (since we have IRA account) or No (we didnt contribute)?

2) Should i report Rollover IRA  account to IRS during tax returns?

If yes, I dont see 1099-R in the tax documents on Fidelity.

[Mike9241]

1) Did you or your wife contribute to a traditional IRA or Roth IRA?

a rollover is not a contribution so "no"

2) Should i report Rollover IRA  account to IRS during tax returns?

it would seem the rollover occurred in 2021 so there is no reporting on this for 2022. if it was in 2022 there would have been a 2022 1099-R

[santhosh1987]

I had a 401k from old employer under  brokerage A, and when i moved to new employer , they have brokerage B.
On 1/27/2022 i requested to  move funds  to new brokerage B into rollover IRA (My current employers 401k plan is in this brokerage B). Should i report this  to IRS in current tax return filing, i don't see this form in my brokerage online tax forms.

If it would have to be done in last year, which i didn't do . What are my options. Please let me know.

[santhosh1987]

Today called previous retirement brokerage A i received 1099R form . What can be options now

1) Did you or your wife contribute to a traditional IRA or Roth IRA?

yes or no ?( Moved funds from retirement brokerage A to retirement brokerage B, but didnt contribute anything)

2) Should i report Rollover IRA  account to IRS during tax returns? I am assuming Yes.  I don't see new retirement brokerage B on 1099 R form.

[santhosh1987]

I made a call and received  1099R from previous retirement brokerage A. retirement brokerage B said i didnt withdraw anything so there wont be 1099R form

1) Did you or your wife contribute to a traditional IRA or Roth IRA?
Yes or No ( Moved the funds from 401k of retirement brokerage A to IRA of retirement brokerage B , we didnt contribute anything to this Rollover IRA account)
2) Should i report Rollover IRA  account to IRS during tax returns? I assume Yes. How does IRS know that funds are not withdrawn for personal use and its just moved to rollover IRA . I dont see name of retirement brokerage B on the 1099Rform.

[pyrotecnico]

Question 1:  Answer NO.  You did not make any contributions this year (2022) per your own comments.  The only time you would answer Yes is when you actually make a contribution to an IRA - and you only report the actual dollar contribution for that year only.  401k's don't require you to report anything to the IRS unless you actually take money out or do a Rollover.  One the rollover is done, you no longer report anything.  (Until you actually do a Withdrawal from the account.

Question 2:  Answer is NO - there's nothing to report now. Which is why Fidelity hasn't provided any Docs for you this tax season.  

[santhosh1987]

Thank you for reply. Just trying to clarify.

Question 1: 

I didnt make contributions but moved from one retirement account with 401k  to another retirement account (this is Roll over IRA) - so it should be yes right?

Question 2:  I have 1099R from previous retirement account(because of move from 401k to new retirement account IRA) and shouldn't 1099R  be added in turbo tax retirements and savings section?

[Opus 17]

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@santhosh1987 wrote:

Thank you for reply. Just trying to clarify.

Question 1: 

I didnt make contributions but moved from one retirement account with 401k  to another retirement account (this is Roll over IRA) - so it should be yes right?

Question 2:  I have 1099R from previous retirement account(because of move from 401k to new retirement account IRA) and shouldn't 1099R  be added in turbo tax retirements and savings section?

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Contributions are not rollovers, and rollover are not contributions.  Different type of transaction with different rules.

If the original 401k plan issued a 1099-R, you must report it.  One of the questions should be something like "what did you do with the money" and one of the choices is "I rolled it all over into an IRA or other qualified plan."

[santhosh1987 · Accepted solution]

Thank you very much for patience.

After i added 1099R form , only question asked was "Did you move this money from a 401(k) to a Roth 401(k)? - I answered No (since its rollover IRA)". But didnt ask what i did with money, not sure how IRS know i didn't use this 401k from previous retirement account, instead its moved to Rollover IRA. 

[VolvoGirl]

What code is in box 7 on the 1099R?   Is it a G for direct rollover?  As long as you didn't roll it over to a ROTH account it is not taxable.   It should be on line 5a and 0 taxable on line 5b and say Rollover by it.

[santhosh1987]

Thank yoy. I see it as G. That explains.

I added 1099R in retirement and savings section.

[LindaS5247]

Since your Form 1099-R has a code G it won't be taxable, as it is properly coded as a direct rollover.

You properly have added it as you said, to your Retirement and Savings Section.

To Preview your Form 1040 before filing you can:

1. Sign in to your TurboTax account
2. Open or continue your return
3. Select Tax Tools from the menu (if you don't see this, select the menu icon in the upper-left corner)
4. With the Tax Tools menu open, you can then:
   • Preview your entire return: Select Print Center and then Print, save or preview this year's return (you may be asked to register or pay first)
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu

Click here for where to enter your Form 1099-R.

 It sounds like you've got this! Please feel free to contact us in TurboTax Community if you have additional questions.

[gulsheenk]

@Opus 17 @LindaS5247 : I have a follow up question to this regarding my rollover from previous employer to my IRA accounts.  I had the following transactions:

1.) Roth 401K funds transferred to Roth IRA account - received 1099 with distribution code G

2.) Non-Roth 401K funds transferred to Rollover IRA Account - received 1099 with distribution code H 

Questions:

i) All of these 1099 forms have some funds in box 5 " Employee contrib/desig Roth contrib or insurance premiums.  Where is this amount coming from? I've called Fidelity a couple of times and they are unable to tell me and asked me to check with a CPA.  Wondering if one of you can guide?

ii) I received another 1099 with distribution code 1B;  I am still trying to figure out what this is considering I have not withdrawn any fund.  Any guidance on how I can decipher this amount of $82.99 in box 5 (rest of the form is blank)?

Thanks!

[Opus 17]

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@gulsheenk wrote:

@Opus 17 @LindaS5247 : I have a follow up question to this regarding my rollover from previous employer to my IRA accounts.  I had the following transactions:

1.) Roth 401K funds transferred to Roth IRA account - received 1099 with distribution code G

2.) Non-Roth 401K funds transferred to Rollover IRA Account - received 1099 with distribution code H 

Questions:

i) All of these 1099 forms have some funds in box 5 " Employee contrib/desig Roth contrib or insurance premiums.  Where is this amount coming from? I've called Fidelity a couple of times and they are unable to tell me and asked me to check with a CPA.  Wondering if one of you can guide?

ii) I received another 1099 with distribution code 1B;  I am still trying to figure out what this is considering I have not withdrawn any fund.  Any guidance on how I can decipher this amount of $82.99 in box 5 (rest of the form is blank)?

Thanks!

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Check your forms again.

1.) Roth 401K funds transferred to Roth IRA account - received 1099 with distribution code G

This is the wrong code, this type of transaction should be reported with code H. 

2.) Non-Roth 401K funds transferred to Rollover IRA Account - received 1099 with distribution code H 

Wrong code, this should be reported with code G. 

I'm not familiar with box 5, this is what the IRS instructions say.

Box 5. Employee Contributions/Designated Roth Contributions or Insurance Premiums

Enter the employee's contributions, designated Roth contributions, or insurance premiums that the employee may recover tax free this year (even if they exceed the box 1 amount). The entry in box 5 may include any of the following: (a) designated Roth contributions or contributions actually made on behalf of the employee over the years under the plan that were required to be included in the income of the employee when contributed (after-tax contributions), (b) contributions made by the employer but considered to have been contributed by the employee under section 72(f), (c) the accumulated cost of premiums paid for life insurance protection taxable to the employee in previous years and in the current year under Regulations section 1.72-16 (cost of current life insurance protection) (only if the life insurance contract itself is distributed), and (d) premiums paid on commercial annuities. Do not include any DVECs, any elective deferrals, or any contribution to a retirement plan that was not an after-tax contribution.

Generally, for qualified plans, section 403(b) plans, and nonqualified commercial annuities, enter in box 5 the employee contributions or insurance premiums recovered tax free during the year based on the method you used to determine the taxable amount to be entered in box 2a. On a separate Form 1099-R, include the portion of the employee's basis that has been distributed from a designated Roth account. See the Examples in the instructions for box 2a, earlier.

That probably explains the separate 1099-R.  But this rest is cloudy to me too.  Did you ever make excess contributions to the 401k, or had your contributions declared excess because the plan failed its non-discrimination testing?

I will ask a smarter expert, @dmertz 

[JulieS]

Yes, box 5 of Form 1099-R is amounts that are included in box 1, but are not taxable either because it represents your after tax contributions (basis), or amounts paid for your health insurance coverage (usually only on a pension). This includes Roth contributions.

Code 1B in box 7 represents an early distribution from a Roth account. If you have no number in box 1 or 2a, I don't know why they would issue the 1099-R at all. It will not impact your return unless there is a number in box 1 or 2a.