We both rolled our 401Ks into IRAs last year. That generated 1099R forms. We didn’t actually take any of the money. The only box that has a value in it is box 1. Do I need to worry about this since we didn’t actually withdraw anything?
There should be a distribution code, too, in box 7. What is that code? Are either of the boxes in box 2b checked?
Well, not sure what you mean by ‘worry about this’. But you do have to report it on your tax return, or you are likely to get a letter from the IRS. If the distribution code is “G” and the box for total distribution is checked, you shouldn’t have to do anything other than input the 1099-R into your tax software, and check to be sure that the total distributions are included on line 5a of your 1040, and that line 5b of your 1040 doesn’t show a taxable distribution. If there is a different distribution code on your 1099-Rs, you may need to answer some additional questions and/or do some manipulation of your tax software to ensure that 5a and 5b show up that way.
The code is G, and 2b is “total distribution”. I tried the download from Fido, and it didn’t see anything (even though I grabbed the PDF separately). So I wasn’t sure if T-Tax was saying “don’t worry about it”, or if it just screwed up the download.
I’ll manually input the 1099Rs based on your input. Thanks.
Just to add on to aj’s response, a rollover from one kind of retirement plan to another is always a reportable transaction. That is, you need to report that it happened on your tax return. You should always get a 1099R whenever there is a rollover - even when it is trustee-to-trustee.
But being reportable doesn’t mean it is taxable. Every withdrawal from a retirement plan gets reported on line 4a or 5a (using the current form - the line numbers were different in other years). But only the taxable amount of the distribution is included on line 4b or 5b.