I hope that this is the right forum for these questions. My wife retired so we terminated her Self-Employed 401(k) plan by rolling over the funds into her existing traditional IRA. She took her RMD before making the transfer. Both of these plans are with Fidelity. We received a Form 1099-R, which was unexpected, since the funds were automatically transferred by Fidelity & both accounts are with Fidelity. Box 7 is coded G, Direct rollover of a distribution … Both of our names appear on the 1099-R, maybe because I’m the plan administrator.

First, why did we receive a 1099-R for this direct transfer? Second, why does my name appear on the 1099-R, since the plan owner was my wife, not me? Third, since she contributed nondeductible funds into her IRA some years ago, we are required to file a Form 8606 so what, if any, effect will this have on the 8606? Fourth, although we thought that the complete balance was rolled over into her Traditional IRA on December 6, 2010, in January 2011, we received the Dec 2010 statement showing a balance of 13 cents. According to Fidelity, this was the dividend earned from Dec 1, 2010 till Dec 6, 2010, the date that the plan was terminated. The 13 cents was then swept out of the SE 401(k) into the Trad IRA. This comment applies to filing Form 5500-EZs. We haven’t had to file 5500-EZs in the past because the amount in the SE 401(k) was well below the threshold for filing. However, since the plan has been terminated, we are now required to file Form 5500-EZ. Because of the 13 cents remaining in the account on Dec 31, 2010, we now have to file 2 5500-EZs–one for the balance as of the date the plan was teminated (Dec 6, 2010), & a second one for the 13-cent balance on Dec 31, 2010.