direct rollover
IN 2009, I deposited a small check amount from class action lawsuit distribution to my IRA account, and the IRA broker recorded it as a direct rollover instead of a new contribution. Should I report this contribution in 2009 tax return? Thanks.
Permalink Submitted by Alan Spross on Thu, 2010-03-04 20:37
No, not unless you received a 1099R for the settlement proceeds from the litigation manager. In that case, you would have to report it as a rollover on line 15 of your 1040.
If the litigation firm has information such that the check is made out to your IRA account, no 1099R should have been issued. If made out to you personally, then you may have received a 1099R, and would have to report the rollover.
Permalink Submitted by veno jones on Thu, 2010-03-04 22:13
Thanks, Alan, you’ve been very helpful.