I actually thought the same. But if you check your taxes that year, there is a 1099 form that your 401k account holder sent to you for the roll over, it lists the contributions and the earnings separately, thst is how they know… [emoji3]
10% Penalties
- Thread starter SSMRI74
- Start date
I actually thought the same. But if you check your taxes that year, there is a 1099 form that your 401k account holder sent to you for the roll over, it lists the contributions and the earnings separately, thst is how they know… [emoji3]
mebden
Recycles dryer sheets
I think everyone also needs to watch when they roll over from a traditional IRA to a Roth IRA. You will have to pay taxes to the Federal Gov and what ever State you reside in along with your County or Parrish taxes. So my recommendation is if you live in a no State Tax you come out better or if you plan on relocating to a NO TAX STATE thats when you should convert saves lots of taxes
jazz4cash
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I don’t think the IRS has the capability to track tax deferred account transactions. I’m trying to figure out what to do with a pile of 5498 forms I’ve received. I keep returns for 10 yrs but that may not be long enough.
Right now I’m sideways with IRS (and DW) because my local bank sent 1099 for a non recordable direct transfer of an IRA and would not send a correction. The procedure to fix this is illogical right down to conflicting instructions letters from IRS. Lately about 2/3 of my IRA transfers have issues.
So yeah….check those transactions carefully.
Right now I’m sideways with IRS (and DW) because my local bank sent 1099 for a non recordable direct transfer of an IRA and would not send a correction. The procedure to fix this is illogical right down to conflicting instructions letters from IRS. Lately about 2/3 of my IRA transfers have issues.
So yeah….check those transactions carefully.
