Question

1099-R form received after filed

Forum|Forum|4 years ago
February 7, 2022
1 reply
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Hi,

My employer recently sold the company and my 401k that I had with the company got transferred to the IRA with a different retirement firm.

This was the first time filing my taxes with this situation happening and I did not know that the retirement company would send me a letter for me to use for my tax returns. So, I had already e-filed my taxes using TurboTax Deluxe, also got my retirement credits, since for some reason the app told me I was eligible.

On my 1099-R form, it says my gross distribution is 3720.62 but the taxable amount and the income tax withheld remained 0.

Do I need to file amended returns for this? I really hope I didn't mess up on my part and get credits from retirement when I shouldn't have.

Thanks for the help!

M

Mike9241

did you get the money or did it go directly to the IRA. there should be a code in box 7. if it went directly to the IRA the code should be G for a direct rollover. It is not taxable since the money went from one tax-deferred plan to another. for tax purposes nothing happened. on the other hand if you got the money from the 401K you had 60 days to deposit the distribution into the IRA - still no tax consequences. however, failure and the entire amount would be taxable and subject to penalties if you're under 55.

if it's taxable for failure to timely deposit into your IRA you need to amend once your return is finalized.

if it's not taxable there's nothing to worry about.

I'm not sure what the IRS will do. it may send you a notice. then you can respond accordingly.