Question

I have a question about reporting 401K rollover funds. I recently changed jobs and I rolled over a retirement account from my former employer. Somehow in my transition of accounts, I forgot to report my Independent Retirement Account (IRA) rollover. Is there a form and a process that I can pursue to report this rollover now – Can I file an amended return to report the rollover?

Answer

401K rollover funds are reported as distributions, even when they are rolled over into another eligible retirement account. An eligible rollover of funds from one IRA to another is a non-taxable transaction. Rollover distributions are exempt from tax when you place the funds in another IRA account within 60 days from the date of distribution. You do need to report this type of rollover to the IRS for tax purposes even though you aren’t required to pay tax on this type of activity. Reporting your rollover is relatively straight forward. While you should have received a Form 1099-R reporting your rollover, if you didn’t, or if you failed to report the IRA when you initially filed your tax return, you can report your 401K rollover on a Form 1040X: Amended Return. Then, complete and file your amended return.

Related Topics

Related Resources

Calculate Cost Basis For Stock Options

What should you know before you calculate the cost basis of stocks for tax purposes? Learn more from the tax experts at H&R Block.

Hobby-Loss Rules And Income

How do hobby-loss rules affect your income and taxes? Learn about the hobby test and get tax answers at H&R Block.

Capital Gain Distributions

What is a capital gain distribution? Learn more about form 1099-Div Box 2A and get tax answers at H&R Block.

What Is a Back Door Roth IRA?

If your income is too high, you can’t contribute to a Roth IRA directly. Learn from H&R Block’s experts how you can still invest by creating a back door Roth IRA.