Rollover IRA

Forum|Forum|3 years ago
February 21, 2023
2 replies
31 views

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.

Best answer by santhosh1987

@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?

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."

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.

Mike9241

Level 15

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

Mike9241

santhosh1987Author

Level 4

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.

santhosh1987Author

Level 4

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.

pyrotecnico

Level 3

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.

santhosh1987Author

Level 4

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

Level 15

@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?

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