The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/ltlt-due-to-the-ever-changing-world-of-high-11832044.aspx

Subject:  Re: 401K&Pension rollover to IRA Date:  1/19/2000  7:20 AM
Author:  pmarti Number:  25453 of 126475

<< Due to the ever changing world of high tech employment, I had the opportunity to rollover funds from the 401K plan at my former employer and a mandatory lump-sum disbursement of my pension/retirement fund from another previous employer.

So, in February of 1999 I rolled over the entire sum into an IRA.

More good news, I got laid off at Christmas, leaving me with about $3,000 in that 401K plan.

QUESTION 1] Is there anything I need to report on my taxes with regards to the Feb 1999 rollover into an IRA? >>

You will receive a 1099-R showing the distribution. That amount goes on line 16a, zero on line 16b, and you write "rollover" next to line 16b.

<< QUESTION 2] What are my options with the $3000 in the 401K? I need to move it somewhere... >>

Your only non-taxable option is to do what you did before--move it into your conduit IRA.

<< QUESTION 3] Can I create and contribute to an education IRA for a neice or nephew? >>

If you meet the AGI limits and no one else has contributed the max to their Education IRAs, yes. (This is not affected by nor does it affect anything in your post, if that's what you were thinking.)

Phil Marti
Tax Preparer
Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us