Discussion:1099-R with incorrected code
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Discussion Forum Index --> Tax Questions --> 1099-R with incorrected code
| 3 April 2007 | |
| A taxpayer decided to roll over his Roth IRA from to another Roth IRA. Instead of doing it directly through the bank, he withdrew the money and after few days deposited to the new account (different bank).
He got 100-R with code J. Since he met the entire roll over requirements it is not an early distribution. If I record a different code than J would it cause a matching problem? Thanks | |
| 3 April 2007 | |
| 5498 of new investment should show as rollover when it is issued this summer. I would show on return as rollover and make sure client has records to back up transfer, i.e. document 60 day period and receipt of money going into new account. | |
| 3 April 2007 | |
| What kind of tax program do you have? Input the 1099R and box J, but in Proseries further down on the page is a place that allows you to input how much was rolled over. Make sure your client met the 60 day requirement - I usually have them give me a copy of the rollover "proof" and keep a copy in my file. | |
Taxestaxes (talk|edits) said: | 17 March 2008 |
| If someone did this situation as described above, wouldnt the interest or earnings be taxable? even though he reinvested them, its as if he got the interest and then invested that in a new Roth IRA? | |
Taxestaxes (talk|edits) said: | 18 March 2008 |
| No response? | |
Taxestaxes (talk|edits) said: | 18 March 2008 |
| Say, someone does withdraw their roth IRA, and doesnt reinvest, the box 2 has no amount, how do you determine the taxable amount. IF they are over 59 1/2, only the earnings are taxable, but what if they dont know how much they contributed? WOuld the the financial instit. have this info? | |
| 18 March 2008 | |
| Hi,
No issue at all, if you have re-invested the withdrawal amount with in 60 days in same plan then no additional tax liability will attract due to early withdrawal of distribution. Thanks. | |
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