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Author: Abhyasi One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 125003  
Subject: Complex Question Re: IRA Reporting Date: 2/28/2000 2:00 PM
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Greetings Fine Fools,

I think I've correctly reported an IRA rollover and distribution I made in '99, but I wanted to confirm my reporting with this board, from which I've lurked so much.

1] I had about 7K in a 401(k) in May-99. I left that job, and transferred the 7K into a Rollover IRA (within 60 days).

2] Next, I transferred the 7K (now in the Rollover IRA) into a Traditional IRA within 60 days (because of what I wanted to do next).

3] Finally, I withdrew the entire 7K from the Traditional IRA, and used it to fund the down payment for my first house. I'm 27 and the IRA was about a week old.

So, from what I understand:

I report 1] on line 16a of my 1040, "Total Pensions and Annuities", but the taxable amount reported on line 16b is 0;

I don't report 2] anywhere; and

I report 3] on line 15a, "Total IRA Distributions", figure the taxable amount with form 8606, and report the resulting taxable amount (which will not incur the 10% penalty, since I used it to buy my first house) on line 15b.

So does it sound like I have all the based covered? TIA for the advice, and for the continued good reading.

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