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Report a Rollover

Forum|Forum|4 years ago
January 25, 2022
10 replies
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Hello All,

I just had a client email this question:

"I just learned that you are supposed to report 401K rollovers on your tax return. I had a big rollover in 2020 and never reported it. I looked on Fidelity's site and there is a 1099 form there."

I think she only had one rollover. Any advice on the types of questions I should ask?

p.s. I didn't prepare those taxes for her. 😉

Thank you!!

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Best answer by sjrcpa

Get the 1099-R.

See if it has a rollover Code.

If not, have client provide proof of rollover.

Then discuss with client whether she wants to pay you to amend the return, or wait for an IRS matching notice and pay you to respond.

sjrcpaAnswer

Level 15

Get the 1099-R.

See if it has a rollover Code.

If not, have client provide proof of rollover.

Then discuss with client whether she wants to pay you to amend the return, or wait for an IRS matching notice and pay you to respond.

The more I know the more I don’t know.

Just-Lisa-Now-

Intuit Community Champion

If it was a trustee to trustee rollover, Dist Code G, Im not sure IRS will even send a CP2000 for that.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

sjrcpa

Level 15

Neither am I.

The more I know the more I don’t know.

qbteachmt

Level 15

"Any advice on the types of questions I should ask?"

Get the details, such as from 401(k) only? Or, was some of it from/put into a Roth? Into what type of account(s) for the from and to, and if there was/is basis, and was any converted? And get the 1099-R and also the 5498, to substantiate answers. Many 5498 came out mid-Aug, for 2020 in 2021.

Don't yell at us; we're volunteers

SensibleandHourlyAuthor

Level 6

HI there,

I have been able to clarify that it was Code G, trustee to trustee move, only one for the year.

Thank you, everyone, for the advice.

rbynaker

Level 13

I'm with Lisa, I would just ignore a missing Code G 1099-R. Nobody's going to be looking for something that's not taxable.

Rick

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