Tax Year 2024 IRA Direct Rollover from a Bank to my existing 401K - What IRS Tax forms should I receive?

[Martinmayer]

In 2024, I did a direct rollover from my IRA Account at a Bank to my existing Regular 401k with my employer. The amount rolled over was $301. Then my IRA Account at the bank was closed. 

So far I have only received a 1099-R from the bank showing the following information:

Box 1  - Gross Distribution - $301

Box 2a - Taxable Amount - $301

Box 2b - Taxable amount not determined and Total Distribution is checked.

Box 3 -  Capital Gain - $0

Box 4 -  Federal  Income Tax Withheld - $0

Box 5 - Employee Contributions - $0

Box 6 -  Net unrealized appreciation - $0

Box 7—Distribution Code—1—This is Early Distribution, with no known exception (in most cases under 59 1/2). 

             IRA / Sep / Simple box is checked

Box 8 -  Other - $0

Box 9b  - Toal employee contributions - $0

Boxes 9a, 10,  11, 12, 13, 14,15,16,17,18,19 - are all blank

I have not received any tax form from my 401k which I would think would show the direct transfer contribution information. Today is Feb 1, 2025, and I would think I would receive a tax form from my 401k (what would this IRS Form be) and is there a deadline for them to provide it to me?

I would hope that I would not have to pay federal taxes and an early withdrawal penalty for the IRA account's Distribution amount. 

Also, How would I enter this situation on Turbo Tax Deluxe?

[VolvoGirl]

No you don't get anything from the receiving 401K account.  I'm surprised you could rollover a IRA to a 401K.  If it was a direct rollover it should be coded a G.  Did you get a check from the bank to take to the other plan?  @dmertz 

[Martinmayer]

Did not receive a check or direct deposit or anything. 

So do I only enter the 1099-R that I received for the IRA Account from the bank? How would the IRS know that it was a direct rollover?

[DoninGA]

Code G in box 7 indicates this was a direct roll-over.

[VolvoGirl]

If it was a direct transfer you should ask the bank to change the 1099R box 7 to code G.  

[dmertz]

This Form 1099-R is reporting an indirect rollover, not a direct rollover.  Fortunately, the result on Form 1040 lines 4a and 4b is the same.  The $301 will be present on line 4a but will be excluded from line 4b with the ROLLOVER notation.  If the rollover was truly a direct rollover where the funds were made payable directly to your 401(k) account (which you indicate is the case), not to you personally, the Form 1099-R provided by the bank is incorrect in that it should have code G, $0 in box 2a and box 2b Taxable amount not determined unmarked.

When entering a code-1 Form 1099-R that reports a distribution that was rolled over, you'll indicate that you moved the funds to another retirement account and that you rolled over the entire amount.

Note that because 401(k) plans do not report anything to the IRS about receipt of rollovers, there is a strong possibility that the IRS will require explanation.  Had the rollover instead been the more common rollover to another traditional IRA, the receiving IRA custodian would have been required to issue a Form 5498 reporting receipt of the rollover which would satisfy the IRS that the rollover had actually been completed.  IF the rollover was accomplished and reported as a direct rollover, the code G has a better chance of satisfying the IRS that the rollover was actually completed (because, by definition, a direct rollover means that the distribution was made payable directly to the receiving account).

It's not uncommon for bank personnel to incorrectly prepare distribution-request forms in a way that gets the transaction reported incorrectly on Form 1099-R.  In general, banks are notoriously bad a training their personnel in regard to retirement accounts.