Did not report 1099-R for Roth 403(b) Rollover
Looking over the instructions for form 8606 for an Roth recharacterization. In reviewing contributions for the last decade, I realized that forms 8606 were properly filed out in 2006 and 2007 for Roth conversions; however, a rollover from a Roth 403(b) to a Roth IRA went unreported in 2009 on the 1040. Never heard a word from the IRS regarding this. I suppose they had quite a bit on their plate in 2009?
I still have the 1099-R and corresponding 5498. Total rollover was $16,237. Contributions were $15,500. What is the best way to proceed? Since I can no longer amend the return, is there a mechanism to file a late form 8606 with letter of explanation to pull in the contributions?
Thanks in advance
Permalink Submitted by Alan - IRA critic on Fri, 2015-08-07 03:16
The only thing you need to do is to keep a copy of that 1099R and 5498 in the unlikely event a question ever arises regarding the composition of your Roth IRA. The 15,500 of salary deferrals that show on the 1099R is treated as regular Roth IRA contributions once in the Roth IRA. You will need that accounting backup if the figures you show on the 8606 that reports a non qualified Roth IRA distribution are ever questioned. There is no need for a retroactive 8606 because the rollover would not have been reported on an 8606, but just on Form 1040 as a tax free direct rollover. With 2009 being a closed year and with no carryover consequences to you for omitting a non taxable transaction, all you need to is retain the documents for their future uses.