You Asked Us - Rollovers and Transfers

Q: I received a distribution of rollover eligible assets from my 401(k) plan and later rolled over the amount to my IRA. The rollover was completed within the 60-day period, including the amount that was withheld for taxes, which I made up from my regular savings. How should I report the transaction on my tax return?

A: Since the amount was rolled over within 60-days, it is not taxable. Therefore, you should report it on your tax form (Form 1040) as a non-taxable distribution. The gross distribution amount should be input on Line 16a of Form 1040 or line 12a of Form 1040A. Input zero on line 16b/12b to indicate that none of the amount is taxable. You will receive a copy of IRS Form 1099-R from the payer, reporting the distribution. Be sure to provide a copy to your tax preparer and let him/her know that you rolled over the amount within 60-days. Your IRA custodian should provide you with a copy of IRS Form 5498, reflecting the rollover contribution. File it along with your tax return for the year. Form 1099-R should be mailed to you by January 31 and Form 5498 by May 31 of the following year

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