Rollover from 401k to Roth IRA
We have a client that requested a rollover from his pre-tax 401k and had the funds deposited directly into his Roth IRA.
How will his 1099R look as far as the coding?
We have a client that requested a rollover from his pre-tax 401k and had the funds deposited directly into his Roth IRA.
How will his 1099R look as far as the coding?
Permalink Submitted by Alan - IRA critic on Tue, 2015-07-07 17:30
It will be just like a 1099R for a typical TIRA rollover, EXCEPT that the taxable amount will show in Box 2a. Since there are relatively few of these done, some custodians have been neglecting to show the taxable amount from force of habit, and if that happens the 1099R will have to be corrected. Incidentally, like a Roth conversion this rollover can be recharacterized to a TIRA account if the Roth rollover loses money or client does not like the tax bill. The recharacterization cannot go back to the 401k plan.