2007-02-02 03:10:29 · 8 answers · asked by amazin315 1 in Business & Finance ➔ Taxes ➔ United States
You need to disclose it on your 1040 but you don't claim it as income. Look at the 1040 on the front page..you'll see two sections for the distributions from a pension plan (I believe it's lines 16a and 16b). First line is the gross distribution amount. The second is the taxable distribution amount. A direct rollover would have zero in the taxable amount. You'll also have to attach the 1099-R just like you would your w-2's.
2007-02-02 06:14:55 · answer #1 · answered by digdowndeepnseattle 6 · 1⤊ 1⤋
A direct rollover is not a taxible event. You did not take constructive receipt of the money, and owe no taxes on it. The company the rollover came from is obligated to send a 1099 regardless, but if you did not take constructive receipt of the money then there is nothing for you to claim on your taxes. I worked in the 401k department of a major provider up to June of 06, and I used to get this question a lot at tax time.
2007-02-02 03:19:22 · answer #2 · answered by Carmine R 1 · 1⤊ 1⤋
Topic 413 - Rollovers from Retirement Plans
A rollover occurs when you withdraw cash or other assets from one eligible retirement plan and contribute all or part of it within 60 days to another eligible retirement plan. This transaction is not taxable but it is reportable on your Federal Tax Return. You can roll over most distributions except for:
The nontaxable part of a distribution, such as your after–tax contributions to a retirement plan (in certain situations after— tax contributions can be rolled over),
A distribution that is one of a series of payments based on your life expectancy or the joint life expectancy of you and your beneficiary or paid over a period of ten years or more,
A required minimum distribution, or
A hardship distribution.
Any taxable amount that is not rolled over must be included as income in the year you receive it.
If a distribution is paid to you, you have 60 days from the date you receive it to roll it over. Any taxable distribution paid to you is subject to a mandatory withholding of 20%, even if you intend to roll it over later. If you do roll it over, and want to defer tax on the entire taxable portion, you will have to add funds from other sources equal to the amount withheld. You can choose to have your employer transfer a distribution directly to another eligible plan or to an IRA. Under this option, the 20% mandatory withholding does not apply.
If you are under age 59 1/2 at the time of the distribution, any taxable portion not rolled over may be subject to a 10% additional tax on early distributions. Certain distributions from a SIMPLE IRA will be subject to a 25% additional tax.
For further information about rollovers and transfers, refer to Publication 575 .
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2007-02-02 03:18:11 · answer #3 · answered by Anonymous · 1⤊ 0⤋
a 1099-anything is a legal tax form that was sent to you because you need to claim it. The IRS also gets the same information so not claiming it is asking to be audited.
2007-02-02 03:19:01 · answer #4 · answered by boinga28 2 · 0⤊ 1⤋
Yes
2007-02-02 08:34:48 · answer #5 · answered by whymewhynow 5 · 0⤊ 1⤋
Yes. In a nutshell, the IRS needs to see that that money is still tax deferred.
2007-02-02 03:24:34 · answer #6 · answered by Ricky J. 6 · 0⤊ 1⤋
If it was rolled over tax-free, then you don't need to worry about it.
2007-02-02 03:19:00 · answer #7 · answered by Bostonian In MO 7 · 1⤊ 1⤋
yes it is also forwarded to the proper agencies so they will know you got it
2007-02-02 03:13:54 · answer #8 · answered by saveit 4 · 0⤊ 2⤋