Will I get a 1099 for my IRA rollover?
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- Опубліковано 31 січ 2022
- Summary of the tax reporting requirements around doing a rollover from an IRA to an IRA, or a rollover of an employer plan like a 401(k), 403(b), 457 or TSP to an IRA
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DISCLAIMER: This video is only helpful hints and education. It is not specific tax, legal or investment advice. Before considering acting on anything you see in this video, first consult with your tax, legal or investment advisor. While the information expressed in this video is believed to be accurate, neither Andy Panko, CFP®, RICP®, EA nor Tenon Financial LLC make any guarantees to its accuracy.
Thank you! This helped so much
Thank you so much for the information.
Thank you for this information. I have to deal with this for my Roth TSP rollover this tax season.
I just subscribed your channel just for your no-nonsense, crisp and useful quick videos. Thank you for sharing your knowledge. Keep it up.
thank you!
Good video. Well explained.
Another superlative explanation with respect to reporting of IRA rollover distributions. You did not mention, but it might be worth noting, that if the rollover is from one custodian to another (IRA --> IRA, 401/403/457 etc--> IRA/Roth, you should also receive a corresponding form 5498 (IRA Contribution Information). And of course that may not arrive until well after you file... as all the 5498's should add up to and reflect all the contributions, conversions, and rollovers as well as the FMV values for computing RMD's for the account in the upcoming year.
It seems odd to me that the 5498's don't seem to report distributions. I guess that's because thats' what the 1099-R's are for. But the 1099's and the 5498's should match up. Especially indirect rollovers -- if it doesn't show up on a 5498 that it seems to me would be a flag that the IRS is going to expect you to pay tax as a normal distribution.
You are so good at presenting this information, would it be worthwhile at some point for you to do a clip on the form 5498?
I note also we don't seem to receive 5498's for IRA annuities (or annuities in an IRA account)... just a 12/31 Fair Market Value letter each December from the insurance company. Maybe this varies by company, I have also only received an annual statement showing a FMV.
That’s not true. You’ll still get a 1099R it’s just add it will not be checked on box D as a taxable event
Are you referring to “direct” trustee to trustee IRA rollovers? Or are you referring to “indirect?”
Hi, I was 71 yrs old last year when I closed out my IRA. I put this money in a regular checking out because I was going to buy a house. The amount was around 51 thousand and they went ahead and took taxes out before which amounted to about 5 thousand. I am on social security. Will I have to pay more taxes on that?
I'd appreciate a quick answer....If I rolled over 401k 100% (no withdrawal) from one company to another company's 401k plan, am I still supposed to receive 1099-R? If I want 1099-R form from the previous years, who should I contact? I'm trying to request for an old 1099-R from the previous year(s) for some reason (Amendment), but when I contacted my current employer's 401k company, they said they have never issued 1099-R in the past 7 years as it was 100% rollover from former employer's plan to another employer's plan. However, you got me thinking if 1099-R does/did exist if I contact the former 401k company. I know either way it's untaxable, but I need to have 1099-R from the past 2 years. thank you in advance!
my wife's 1099-R doesn't have a tracking ID and that won't let me enter it into intuit.
Hi Andy, Do you add the Gross Distribution from the 1099-R to your Wages from your W-2? Where do you post the 1099- R on your tax form? Thanks
Yes, the gross distributions get added to your tax return. On the 2021 1040, they would go in line 4a (for IRAs) or 5a (for employer retirement plans like 401(k)s). The amount of the distribution that's taxable goes in lines 4b and 5b, respectively (IF any of it is taxable...in a typical rollover from one tax-deferred plan to another, the distribution wouldn't be taxable).
And yes, your wages go on the tax return, too. On the 2021 1040, it was line 1.
Question about my early withdrawal from Roth IRA…have had the current account since 2009 (so over five yrs) but I’m not 59 1/2. I withdrew money anyway and now I’m trying to determine my personal contributions to avoid tax / penalty on that amount. If I have no record of the original account it was rilled over from how do I determine my contributions? I’n guessing the proper reporting then would be that I can only claim what I have actual history of in the current account?
You should have received a Form 5498 from the custodian every year you contributed. Do you happen to still have those as part of your prior years tax returns? Those forms would show the amounts contributed each year.
Or if not that, you can try reaching out to the old custodian to see if they have copies of your statements. Your December statements each year should show the total amount contributed each year.
Or if not that, then you kind of have to had tracked it on your own through a spreadsheet or notepad or something.
The IRS will have copies of all of your Forms 5498 from throughout the years. I don't think they'd make them available to you (though maybe I'm wrong), but the at least know how much you've contributed. So if you ever pull out more than cumulative contributions and don't report it on your return, they will know and (in theory) will flag it and question you.
So, if you can't decisively figure out how much you've made in total contributions, you have to kind of guess, and be conservative so as to not set off IRS flags.
Or at least this is my understanding of it. Maybe there are potentially other ways to get the info that I'm not aware of.
I rolled my company pension/401k over to a ira/cd acct. That was in 2023 . Facility closed in jan. 2023. I use ole national bank for ira. My acct. Was set up in jan 2023. I had it set up to deposit 900.00 each month so i can supplement my s.s. i have them take 100.00 for fed. Taxes each time. I didnt start drawing until after i filed taxes in Feb. Ive been drawing monthly since then and had to do emergency withdraw of 11,000 dollars. I received a statement with all withdraws, taxes paid etc from old national bank. Do i get a 1099 from them also this year?
If you took distributions from an IRA (which it sounds like you did), you will get a 1099-R for it
Hello thanks for all the information! I was still wondering however, if the 401k rollover to IRA was completed in February of this year, do I still file it on this year's taxes?
When did the money leave the 401(k)?
I transferred money directly from a "Non Custodial Retirement Account" (which was with my previous employer and they called it 401k/Profit sharing program), to a Rollover IRA account. Only the part of money where I was vested was transferred. However, I did not receive a 1099-R. Was I supposed to receive one?
Additional information - I platform did not change. I had my previous account on ETrade, and the new account on ETrade as well.
Yes, I believe you should have received a 1099-R for the money that left the 401(k), even though it went directly into another qualified plan (i.e. your IRA).
I believe ALL distributions out of 401(k) plans are supposed to generate a 1099-R, even when rolled over. This is different than how IRA rollovers typically work; if you rollover/transfer one IRA directly to another, there is no 1099-R involved).
So call up your 401(k) plan administrator and ask them about the 1099-R.
Hi. Does that 1099 come in the following year? That’s a long wait to find out they screwed up, if you do the rollover in the first quarter of the year? I’m in TSP and I think they always send you the check, made out to your IRA rollover custodian, but it also says “FBO your name”.
Yes, the 1099-R comes out in January the following year. And the way you described the titling on the check is correct; it's not technically payable to you. Instead, it's payable to the custodian of your IRA for the benefit of you.
1099-R's do get misreported sometime. In which case, after receiving an incorrect 1099-R, you reach out the custodian to get them to fix it. Not an ideal situation, but it definitely happens.
Hello, I filed my taxes on the 27th of January. Had no idea about the 1099-R , received it February 5th. It was my employer 401k Plan rolled over to an IRA. Only 1200 gross distribution , every other box has 0.00 and box 7 is labeled G. I DID NOT AMEND YET. Any Advice on what I should do ?
At some point you may get an automated notice from the IRS asking why the gross distribution shown in box 1 of the 1099-R is not shown on your return. At that point you can address it and explain it. There shouldn't be any penalty or taxes owed as a result since the taxable amount of that rollover is zero.
If you do a direct rollover from a SEP IRA to a rollover IRA do you get a 1099R?
Hello, I just received a check from my previous employers Roth 401k to my Roth IRA. The paperwork attached to the check showed a tax withholding of roughly 17%. Do I get these taxes back since it was a direct rollover? Is that the point of the 1099? I am confused because I thought the entire amount should be transferred to my Roth IRA without being taxed.
Check with the 401(k) administrator to see why they withheld taxes. If if it was properly processed as a direct rollover, they shouldn’t have.
It sounds like they may have processed it as a normal distribution, hence the tax withholding. But first ask them to confirm. Their answer will dictate what should be done now.
How do they keep track of whether it goes from a 410k to a Roth or a traditional IRA?
If it's a Roth 401(k) you're rolling over to a Roth IRA, the code in box 7 of the 1099-R should be H, which is for "Direct rollover of a designated Roth account distribution to a Roth IRA."
If it's a traditional 401(k) you're rolling over to a traditional IRA, the code should be G, which is for "Direct rollover of a distribution to a qualified plan, a section 403(b) plan, a government section 457(b) plan, or an IRA."
If it's a traditional 401(k) you mistakenly or intentionally roll over to a Roth IRA, I think it would still have code G. And then you'll get a Form 5498 from your Roth IRA custodian showing the money coming into the Roth IRA. That means you ultimately did a Roth "conversion" and will have to report that whole thing as taxable on your tax return.
I have a rollover IRA (from previous employer) since 2016. I didn’t know any better and left it in the rollover IRA and made some capital gains from the investment. I now understand that I need to move this rollover IRA into a ROTH. Will this changes my tax bracket? Pls advise. Ty for your time.
If the rollover IRA is all pre-tax money, any amounts you “convert” from it to a Roth IRA will be taxable
If you do an employee 401k plan rolled over to an IRA on what year will you report that on the return?
It gets reported on the 1099-R for the year in which the money left the 401(k).
In July, 2021, I Converted 51k of my Company 401k match, Pre tax to Roth. This was in an plan conversion. My 1099-R shows it as a rollover, G. I'm confused because I assumed I would owe a decent amount filing my taxes for 2021. I did deduct extra tax withholding on my pay checks during 2021 in order to keep what I owe lower during tax season, but only an extra $800 per month from July to December. My tax adviser shows I get a return, but shouldn't I still owe for that 51k conversion to Roth? Thank you.
Yes, that $51k should show up as a taxable conversion. What does box 2a of your 1099-R show; zero or $51k? And is the "Taxable Amount Not Determined" box below it checked?
@@RetirementPlanningEducation 2a shows the 51k and the "Taxable Amount Not Determined" is not checked. I assumed this would be taxable income, my tax adviser keeps saying that the 1099R is showing it as a "Rollover" (G), and is not taxable. But that make no sense to me. I can't see any reason the IRS wouldn't tax this. Thank you for responding!
@@TheOblivion2025 Yeah, something doesn't sound right. Assuming at least some (if not all) of the $51k was pre-tax money, then it definitely needs to be taxed.
The only thing I can think of is the tax preparer would need to manually adjust in his or her software to make it show as taxable as opposed to just letting the software take the 1099-R info on its face value. Money that is converted from a pre-tax account to a Roth account definitely needs to be taxed in the year of the conversion.
When rolling over a 401K to an IRA, does the 1099-R get sent by the former custodian (the 401K people) or the new custodian (the IRA people)?
The former custodian
What is the box 7 code for if I took money out of my Roth into a personal account then rolled it over within 60 days?
The code will be for a normal Roth distribution. It's then ultimately up to you to reflect on your tax return that you did an indirect rollover with the money. Otherwise, the custodian from which you took the distribution doesn't know what you're eventually going to do with the money (i.e. they don't know that you're going to indirectly roll it over with 60 days), so they have to code it like it's a straight up distribution.
@@RetirementPlanningEducation So code G? I put that in and it looks like it corrected it within turbotax.
Hi. I have had my head spinning about this. I had a very unusual occurrence happen to me. I looked it up and there is very little if no info out there about it. I received a surprise premature redemption check from a roth IRA. No warning whats so ever. The explanation was that the fund decided to close and liquidate all assets Had they informed me, we could have done a direct rollover. Now that I am doing my taxes using turbo tax, and I came up with inputting the code in box 7, it is J, according to the 1099-R which looks like I redeemed all the shares before 59 and a half. How can I properly report this. I received the funds by check made out to me on 11/30/22, and I deposited it to a different Roth account on 12/27/22. Can you help me please? Thank you
Based on the fact that you put the money back into another Roth IRA within 60 days of the original distribution, you functionally did an "indirect" rollover. So long as you didn't another indirect rollover within the last 12 months, all is good. But you'll have to figure out how in your tax return software to report it as an indirect rollover, which means it won't be taxable at all.
But that's the problem I'm having. Finding out how to do it or finding anyone that knows how to do it. Can you give me help with this,?
@@josefernandez2722 What tax prep software do you use? They should have a support contact number you can call to talk with someone there to have them walk you through how to do it. Each software will have it's own process and steps for how to reflect a Roth IRA distribution as a 60-day indirect rollover. Only the people who know your particular software well (e.g. it's help desk or support team) will be able to explain how to reflect it on your return.
So I have a 401k from my previous employer through principal...I want to roll it onto a IRA through vangaurd. Principle only offers an indirect rollover for an outside IRA. When they send me the check, do I deposit the check to into my bank account first and then into the vangaurd IRA? I'm just really confused Haha
To whom will the check be made out: you or Vanguard fbo your IRA? Ask Principal that. Chances are it’s the latter scenario, which is still a “direct” rollover because the money isn’t made payable to you and is instead payable to Vanguard fbo your IRA. You would simply give the check to Vanguard: do NOT sign it yourself and do NOT attempt to deposit it into your own bank account.
@@RetirementPlanningEducation Thanks so much for the quick response! I will get with principle today to see about the check as well as vangaurd to see about getting the check to them once I receive it. Again, thank you!
Will I get a 1099-R for my brokerage account since I made a direct transfer from Vanguard to Schwab?
A transfer itself won't trigger getting a 1099 if you're transferring a brokerage account to a brokerage account, or doing a direct transfer of an IRA to another IRA.
But if it's an IRA and you took any distributions, you'll get a 1099-R for that. Or if it's a normal brokerage account, you may or may not get a consolidated 1099, depending what kind of activity you had in the account(s) during the year
I am confused about what to put in line 2a. I rolled over a previous employer plan to my Roth IRA and I have an amount in 2a on my 1099-R but code G listed on my account. I was told to put 0 in my taxable amount because of the G code but am not sure.
Is the box for "Taxable amount not determined" checked off on the 1099-R? That would be box 2b of the 1099-R
@@RetirementPlanningEducation no it is marked total distribution. I went back and read the documents I received when I rolled it over and it said since it’s a Roth I converted to I would be taxed but I am unsure
@@skylarrubalcaba525 what type of employer plan was it? 401(k)? And was it all a traditional pre-tax account?
@@RetirementPlanningEducation i believe it was a state pension plan not a 401k or anything else. Yes it was all pre tax
@@skylarrubalcaba525 If it was all pre-tax and you rolled it into a Roth IRA, then you technically did a Roth "conversion" and all of the rollover will indeed be taxable in the year of the rollover
Hello, does this apply to in-SERVICE Rollovers as well? Under the age of 59.5? As long as the codes are Correct does it avoid the 10% early with penalty?
So long as it’s a proper rollover (and coded correctly on the 1099-R), it’s not a taxable event or an event subject to the 10% penalty
@@RetirementPlanningEducation Is this something that can be monitored as far as the correct code? How can I monitor that? I am 57 and wanting to move my money out of my 401k into an annuity
@@jeremydavis274 you can ask the 401(k) administrator how they’ll code it. Otherwise, you won’t know what code’s actually on the 1099 until you get it early next year.
You skipped the whole part about trad IRA rollover to Roth IRA. I assume I WILL get a 1099 for that, as I know it is fully taxable.
That's a whole separate ball of wax as that's a "conversion" and not a rollover (though I guess an argument could be made that a conversion is under the overarching umbrella of rollovers). And the tax characteristics of that aren't necessarily so simple; conversions will be only partially taxable if there is any after-tax contributions in the IRA
@@RetirementPlanningEducation Thank you. I always seem to mix up the exact terminology between rollover and conversion. But in my case every cent of the contributions into my trad IRA was tax deferred, so everything within it is taxable, I am sure of that.
So I got a 1099-B during a rollover, after entering numbers in TurboTax it is showing I need to pay a large amount due to gains! Is this accurate or am I missing something? I rolled everything within 2 weeks.
1099-B's are for normal taxable brokerage accounts. If you did a direct trustee-to-trustee transfer of the assets from the old custodian to the new custodian, no the transfer wouldn't be taxable as nothing would actually be sold. Furthermore, the 1099-B wouldn't show anything about the transfer; the 1099-B will only show actual sales that happened in the account, as well as things like dividends and interest that was paid on positions in the account.
When you say you did a "rollover," did you sell out of the positions in the account, take the cash and then deposit it into a different account and repurchase securities in the new account? And this was all in a normal brokerage account (i.e. not an IRA or Roth IRA)?
@@RetirementPlanningEducation
Yes, I sold the positions and brought the check to a new financial firm to redistribute in retirement savings. It was part of my work retirement funds.
@@JJ-pg4ud Okay, so it came from a 401(k) or some other employer retirement plan? And was the check made out to you personally or was it made out to the custodian of your new account (which was presumably an IRA)?
@@RetirementPlanningEducation
At the time I received 3 checks, I do not recall if the check was in only my name or joint with my new trustee. I do know that I notified them of my intentions.
@@JJ-pg4ud It would be best to check with the original custodian of the account(s) to confirm how they processed the transfer/rollover/distribution, and then confirm with them whether the 1099s they sent you jive with how they processed the outgoing money