If I was laid off, and rolled my 401k into a Roth IRA, do I need to do anything on my taxes?

Forum|Forum|2 years ago
January 15, 2024
1 reply
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I did not cash out any of the funds

TurboTax Deluxe Online

Best answer by dmertz

Regardless of the details, a rollover from a 401(k) is always reportable on your tax return, even if nontaxable.

A nontaxable direct rollover from the designated Roth account in the 401(k) to a Roth IRA would be indicated by code H in box 7 of the Form 1099-R. A taxable direct rollover from the traditional account in the 401(k) to a Roth IRA would be reported with code G in box 7 and the taxable amount, usually the entire amount, in box 2a. Only indirect rollovers are subject to the 60-day rollover deadline and would be reported with a different code in box 7 than the codes for direct rollovers.

VolvoGirl

Employee

You moved it to a ROTH? Was the 401K also a Roth? You will owe tax on the whole amount. Did they take any tax withholding out of it? You had to roll it into a Traditional IRA to avoid the tax. Was it a direct transfer from the 401K or did you get a check and take it to the IRA? You had 60 days to put it in the IRA. You will get a 1099R for it.

Enter a 1099R under

Federal Taxes Tab or Personal (Home & Business)

Wages & Income at the top

Then scroll way down to Retirement Plans and Social Security,

Then IRA, 401(k), Pension Plans (1099R) - click Start or Revisit

There are 4 boxes. Be sure to pick the right box for the kind of 1099R you got.

If you are filing a Joint return be sure to pick which person it is for.