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Roller over from 403b to IRA, distributed gross distribution, however the client had an existing IRA with a total basis of $2200.00 How do I treat the roller over?

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itonewbie
Level 15

If it's a 60-day rollover, the gross amount (including taxes withheld, if any, which would require a top up) was contributed to the IRA, and there is a F.5498 to verify the contribution, none of the distribution would be taxable.  Otherwise, all or part of it may be a taxable distribution to the extent it does not represent a return of basis (taking into account all IRA's, except for Roth) and the distribution may be subject to early distribution penalty, if applicable.

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itonewbie
Level 15

If it's a 60-day rollover, the gross amount (including taxes withheld, if any, which would require a top up) was contributed to the IRA, and there is a F.5498 to verify the contribution, none of the distribution would be taxable.  Otherwise, all or part of it may be a taxable distribution to the extent it does not represent a return of basis (taking into account all IRA's, except for Roth) and the distribution may be subject to early distribution penalty, if applicable.

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Still an AllStar
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