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03-07-2018 09:35 AM
Last year I rolled over a 401K from a former company into the 401K of the company I currently was working for this was all handled smoothly I received the 1099R for that transaction. Later I retired and decided to roll my 401K into an IRA that also went smoothly and I have a 1099R for that transaction. The problem or question I have is this when you list the 1099R's for these transactions on the Tax form it adds them together giving a total that does not exist. example: Company A 401K had 120.00 in it Company B had 80.00 in it together that comes to 200.00. when you put these totals in the tax form it adds them together giving you 320.00. The tax form does not separate what was rolled into the 401K and then what was rolled into the IRA. The IRA account should be 200.00 not 320.00.
Hope someone can help with how I can get the tax form to reflect this.
03-07-2018 09:45 AM
Hello, it sounds like it is actually being handled correctly if no amounts are being shown as taxable.
Company A issues their 1099R based on the total distribution, so 120 in your example. Company B when they have a total distribution to the IRA would then be 200 (120A +80B) since that is the amount of money that left the account. So your amounts distributed from the 2 accounts is 320. As long as these were rollover transactions, nothing should be showing as taxable income, the 5498 you receive from the IRA should reflect the 200 that was actually placed there. As long as these were direct rollovers there should not be an issue.
03-07-2018 09:50 AM
Thanks for answering but I still would like to know why the program adds the two together making an amount that does not or never did exist. One amount (120.00) is for the rolled over 401 the other the combined 401K (200.00) rolled into the IRA not a total rollover of 320.00.