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Author: PurdueMatt One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121341  
Subject: How to report an 401K to Trad. IRA rollover Date: 2/22/2003 9:03 PM
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Hi all ...

I need a little advice on the "how do I report this?" front. In 2002 I rolled over my 401K from my former employer to a Traditional IRA. I received from my former employer a 1099-R detailing the distributions.

Of course ... doing the "Foolish" thing ... I rolled over the entire amount and resisted the temptation to pocket some cash. Therefore, since it was a 100% rollover, line 2a "Taxable Amount" reads $0.00.

The only entries in the form are Box 1 (the amount of the distribution), 2b (marked "Total Distribution"), and Box 7 (marked "G" for "Direct Rollover to IRA"). For an entry of "G" in Box 7, the notes on the back of the 1099-R state that "You need not file Form 5329".

My question is this, what do I do with this 1099-R? Do I need to make a note of it somewhere on my 1040? If so, where?

Thanks!

Matt

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Author: lorenzo2 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 64011 of 121341
Subject: Re: How to report an 401K to Trad. IRA rollover Date: 2/22/2003 10:50 PM
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The code "G" in box 7 denotes that you made a direct rollover from your 401k to an IRA. That's allowed without penalty, and that's why you don't need a 5329. (That's the form on which you calculate a penalty, if one applies.) As to how you report this, if you look closely at the back it probably says to put the gross distribution amount (from box 1) on line 16a of your Form 1040. Since nothing is taxable, you'll put zero on line 16b. And you write "rollover" somewhere in the vicinity of line 16. (This is all spelled out in the detailed instructions for Lines 16a and 16b in the 1040 instruction booklet.) Do not attach the 1099-R to the return, but keep it for your records.

Lorenzo

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