IRA to 401K rollover
I understand the rules as they relate to moving money from IRA to IRA via the “60-day rollover.”
Can the same be done moving from IRA to 401K, or does that have to be done trustee to trustee?
Thanks!
I understand the rules as they relate to moving money from IRA to IRA via the “60-day rollover.”
Can the same be done moving from IRA to 401K, or does that have to be done trustee to trustee?
Thanks!
Permalink Submitted by Alan - IRA critic on Mon, 2014-04-14 17:04
As far as the IRS is concerned, an IRA rollover to a qualified plan can be done either as a 60 day rollover or as a direct rollover. You should check with the receiving plan to determine which method is required for the plan to accept a rollover from an IRA. Either way, the IRA custodian must issue a 1099R reporting the distribution. Further, the taxpayer must include an explanatory statement with their return regarding the rollover, as the employer plan does NOT issue a 5498 or similar form reporting the receipt of a rollover contribution, so the IRS might think you did not really do a rollover of the IRA distribution.
Permalink Submitted by Jason Frank on Tue, 2014-04-15 12:47
Thank you! It is good to know that the receiving plan does not issue a 5498!