Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
Can you explain why this is considered a roll-over? I'm new to this and want to make sure I don't do it incorrectly. I think I made it to repay within 60 days, as that was definitely my intention.

You need to look at your records and make sure you redeposited the full amount in a Roth account within 60 days of the distribution. The year of the redeposit is irrelevant.

However, I see that the 1099-R sent from my financial institution classifies it as an 'early distribution, no known exception' in Box 7 of the 1099-R.

They're required to report the distribution, and since they have no idea whether an exception applies or not, the box 7 code is correct.

If you did complete a timely rollover, you report it on line 15 of your 1040 per that line's instructions. If you didn't complete a timely rollover, complete Part III of Form 8606 to show the distribution. If there is a taxable amount of the distribution or if you withdrew converted funds before 5 years passed, you will use Form 5329 to show the exception to the penalty.

Phil
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.