When Rolling over money from a Roth 401k into a Roth ira, Do u have to report it on ur taxes?

Question

if someone has $$$ in a Roth 401k and they only worked a few months in 2006, they quit the compeny and rollover the $$$ into a Roth ira , when they do taxes for 2006, do they need to report it? and if so on what form?

Answer 1

Since no before tax money can go into a Roth IRA any portion of the rollover that would be taxable must be claimed as such for the year of the rollover. You should receive a 1099R that should show the taxable amount if any. You would also claim this taxable portion in the same way you would a converted amount on part 2 of the form 8606.

Report the full amount of the distribution of the box 1 of the 1099R on line 16A and the taxable amount from box 2a of the 1099R on line 16B and write the word Rollover next to 16B.

The rollover from the Roth 401K will not affect the Qualified Distribution date of the Roth IRA since it becomes basis in the plan
See Publication 590
http://www.irs.gov/publications/p590/index.html

Answer 2

to function to the confident solutions...The 5 3 hundred and sixty 5 days era would not carry over nevertheless. So, any funds you roll over out of your 401k would be utilized to the 5 3 hundred and sixty 5 days era appropriate inclusive of your ROTH. meaning in case you have a ROTH 401k? you may greater effective have a ROTH IRA too!

Answer 3

Oh yes. If you had rolled it into a Traditional IRA, then no.
You have to indicate you rolled it to a Roth, pay the Tax perhaps even a 10% Federal Penalty Tax. However when you retire after 59 1/2 you can take the Roth IRA money out Tax free....

Answer 4

You'd report the gross distribution on the pension line of the 1040 or 1040A, but report zero as taxable. You should get a 1099-R that shows it that way.

Answer 5

They should have gotten a form 1099 reporting the distribution. You report it as a rollover, and pay no tax.

Answer 6

No only when you pull it out to spend it