Using Line 15 instead of Line 16, in 2007

Submitted by Amar Patel on Sun, 2021-02-28 16:15

In 2007, a rollover from a pair of employer-sponsored retirement plans into a traditional IRA was completed, after having moved from that employer. The 1099-R forms match the 5498 for that year. It involved all pre-tax funds, but it was not taxable.

But the transaction was reported on the 2007 Form 1040 on Line 15 instead of Line 16. Line 15a included the totals from the 1099-R forms, and Line 15b was blank. But maybe it should have been reported on Line 16?

How much harm did this cause?



Submitted by Alan - IRA critic on Sun, 2021-02-28 17:21

No harm whatsoever. The 2007 tax year is long since closed.  There was no current tax impact by reporting on 15 instead of 16, and the 5498 confirms that the funds were moved into an IRA. 

Submitted by Amar Patel on Sun, 2021-02-28 17:57

Phew! That is a relief! I realize that the 2007 tax year is long closed. But, when it comes to funds with special tax statuses, I know I have to maintain “impeccable” documentation for – possibly – decades after the initial transactions and reporting. And then, assuming W-2s and 1099s and account statements and 8606s do not go missing or do not fade to being illegible, etc., honest mistakes, like using Line 15 versus Line 16, are troubling because I do not know what mistakes compound into future years, leaving us open to a huge “gotcha” in what are supposed to be special accounts for retirement.

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