1040 line 4a/b versus line 5a/b
Hi:
I’m not understanding the tax code explanation for what is recorded in 1040 tax return line 4a/b versus 5a/b. Is the following correct?
a. Record the following on 5a/b: 401k to IRA direct rollover, 403b to IRA direct rollover, 401k to direct roth IRA conversion, Roth 401k to direct Roth IRA rollover, Inherited IRA distribution to self, Pension distribution to self
b. Record the following on 4a/b: IRA to Roth IRA
Thank you,
Permalink Submitted by Alan - IRA critic on Tue, 2025-03-11 17:27
Line 4 is for IRA distributions of all types and line 5 is for distributions from all other plans that are not IRAs.
Permalink Submitted by Pamela Poker-Meichtry on Tue, 2025-03-11 19:35
I’m interpreting your comment to mean the following. Is this accurate?
a. Record the following on 5a/b: 401k to IRA direct rollover, 403b to IRA direct rollover, 401k to direct roth IRA conversion, Roth 401k to direct Roth IRA rollover, Pension distribution to self
b. Record the following on 4a/b: IRA to Roth IRA, Inherited IRA distribution to self.
Inherited IRA distribution to self: I was reading that this could be reported on line 4 or 5 depending on if contains basis. This inherited IRA does not have basis since it does not contain nondeductible contributions. Can you please clarify?
Permalink Submitted by Alan - IRA critic on Tue, 2025-03-11 20:53
An inherited IRA or inherited Roth distribution is always reported on line 4. It does not matter whether the IRA includes basis or not. But if a non Roth IRA includes basis, the distribution must also be reported on Form 8606 to determine the taxable portion.
All IRA or Roth IRA distributions are also reported on line 4. Anything that comes out of an IRA plan. That includes a reverse rollover of IRA to 401k, because the distribution is from an IRA.