How to do federal income tax when I transfered money from my 401K to a Rollover IRA account? Please help. Thx!

Question

In 2006, I transfered money from my employer sponsor 401K directly into my Rollover IRA account. They sent me a 1099-R form for the distribution although this money is tax exemption. How am I going to report this 1099-R in my income tax? Thanks for your help! Le Nghp

Answer 1

Report on line 16 A the amount of the Rollover and on 16B put -0-
to the left of 16B write Rollover

1040A
Line 12A the rollover amount 12B -0- and write Rollover to the left

Answer 2

The others have told you how to fill out the form...follow their advice. Don't worry about the fact that a 1099-R was sent. Take a look at the 1099-R. Box 1 has a number in it...that's the gross distribution. That's the line that you report on line 16a. But Box 2 has a zero in it....that's what got reported to the IRS as being taxable. So, the IRS knows it's not a taxable event. They just want you to confirm it on your 1099-R and the IRA company to confirm it on THEIR tax reporting so the entire transaction trail is completed.

Answer 3

first of all, there is no penalty for early withdraw in case you save the money in an IRA, no matter if its a first or ROTH. only be particular you do an instantaneous move with the help of your funding broking service, do not take the examine on your call and attempt to deposit the money decrease back into an IRA, that only receives messy. once you change an IRA or 401k to a ROTH, the quantity you change is taxable earnings. if you're in a low tax bracket and may want to have adequate money the taxes, then it is a awesome time to remodel because you pay taxes on the marketplace fee of the investments on the time of conversion. which ability you're replacing even as the marketplace is low so that you instruct a lot less taxable earnings. What it particularly comes right down to is that your taxable earnings will enhance by technique of the quantity you change, and for this reason your tax felony duty will enhance. in case you've already got $0 taxable earnings with the aid of deductions, agency losses, etc, then you might want to be in a position to remodel to a ROTH without easily having to pay any taxes. It also might want to advise getting a smaller refund, yet nevertheless no longer owing further earnings April. the in elementary words thanks to get an precise forecast of the way it is going to impact you is to run estimates in holding with 2008 tax varieties. I advise you get a loose replica of the utmost version of swifter tax 2008. The loose version received't provide help to print your varieties or connect and e-document, yet you at the on the spot are not attempting to attempt this besides. making use of pay stubs and information from the apartment resources, put on your 2009 information, then play round with each and every of the "what-if" thoughts to work out how a lot it is going to fee you to remodel to the ROTH. Its probably invaluable to remodel as a lot as you may have adequate money.

Answer 4

You report the total amount that was taken out on line 16a of 1040. Then put zero on line 16b if it was all rolled over, and write "rollover" next to it. If you are using tax software it should handle rollovers, they are very common.

Answer 5

On a direct rollover Agent to Agent and not to you..you don't have to report or do anything. If the check was made to you and you gave it to another investor...you are screwed. You will be sent information like a 1099 and you will pay your tax rate as regular income.

Answer 6

if you rolled this money over within 60 days of your distribution, then there are no tax consequences. you would report the gross distribution on Form 1040, line 16a. The taxable amount would be 0 on line 16b.