401k rollover to rollover IRA - Will I receive a 1099-R form for tax filing?
Hey tax folks! I recently transferred my old 401k from my previous employer to a new rollover IRA I set up with Fidelity. This is my first time dealing with this kind of thing, and I'm a bit confused about the tax implications. I'm supposed to be receiving a 1099-R form that I'll need before I can file my taxes this year, right? Is that something Fidelity will send me, or will it come from my old 401k provider? And when should I expect to receive it? I don't want to file too early and miss including this information. Thanks for any help!
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Harmony Love
You're absolutely right - you will receive a 1099-R from your previous 401k plan administrator (not Fidelity). The 1099-R documents that money left your 401k plan, and you'll need this for your tax filing. The good news is that a direct rollover from a 401k to an IRA is generally not a taxable event as long as you followed the proper procedures. The 1099-R will show the distribution code in Box 7, which should be code "G" for a direct rollover. Even though it's not taxable, you still need to report it on your tax return. These forms are required to be sent out by January 31st, so you should receive it by early February at the latest. I'd recommend waiting until you have this form before filing your taxes to avoid having to file an amendment later.
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Rudy Cenizo
•So if the code in Box 7 isn't a "G" should I be worried? Also, do I need to do anything special with my tax software to show this wasn't a taxable distribution? I don't want the IRS thinking I'm trying to avoid taxes on a withdrawal!
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Harmony Love
•If the code isn't "G" then yes, you might want to follow up with your previous plan administrator. The most common codes you might see instead would be "1" (early distribution with no known exception) which could potentially subject you to taxes and penalties, or "7" (normal distribution) which would be taxable but without penalty. When using tax software, there will be a specific section for reporting 1099-R distributions. The software will ask you to enter the information exactly as it appears on the form, including the distribution code. As long as you enter this correctly, the software will handle the proper tax treatment. Most software will also specifically ask if this was a rollover to confirm the non-taxable status.
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Natalie Khan
After dealing with similar rollover confusion last year, I discovered taxr.ai (https://taxr.ai) and it was seriously a game-changer. I uploaded my 1099-R that had some weird codes I didn't understand, and it instantly explained what everything meant and confirmed my rollover wasn't taxable. It also flagged that my former employer had the wrong code in Box 7, which could have caused major headaches if I hadn't caught it.
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Daryl Bright
•How does it work with multiple retirement accounts? I've got three old 401ks and two IRAs and honestly I'm drowning in tax forms every year.
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Sienna Gomez
•Does it actually catch mistakes the way you're describing? I'm skeptical because my tax guy charges me $350 and still misses stuff sometimes.
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Natalie Khan
•It handles multiple accounts really well. You can upload all your documents at once, and it organizes everything by account type. It actually creates a summary showing all your retirement accounts together which makes it much easier to see the big picture of your retirement savings. For catching mistakes, that's what impressed me most. It cross-references information across documents and identifies inconsistencies. In my case, it caught that my 401k administrator had used distribution code "1" instead of "G" which would have made it look like I took an early withdrawal instead of doing a proper rollover. Saved me from potential penalties and a lot of back-and-forth with the IRS.
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Sienna Gomez
I was really skeptical about taxr.ai when I first heard about it (as you can see from my comment above), but after the nightmare I had last year with my 401k rollover, I decided to give it a try. I had rolled over two different 401ks and received conflicting information on my 1099-Rs. Uploaded everything to taxr.ai and within minutes it identified that one of my forms had incorrect coding that would have triggered taxes on what should have been a non-taxable rollover. The system explained exactly what to do to get it corrected with my old plan administrator. Saved me from a $6,700 tax bill I shouldn't have owed! Wish I'd known about this service years ago.
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Kirsuktow DarkBlade
If your old 401k administrator messes up the 1099-R (which happens more than you'd think), you might need to call the IRS to sort it out. After spending HOURS trying to get through to a human at the IRS, I found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent in about 15 minutes when I'd been trying for days on my own. The IRS helped confirm that my rollover shouldn't be taxed despite what the 1099-R incorrectly showed.
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Abigail bergen
•How does this actually work? I don't understand how a third party service can get you through to the IRS faster than calling them directly.
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Ahooker-Equator
•Yeah right. Nothing gets you through to the IRS quickly. I've spent literally DAYS of my life on hold with them. This sounds like a scam to me.
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Kirsuktow DarkBlade
•It works by navigating the IRS phone system and waiting on hold for you. Their system uses technology to stay in the queue and then calls you once they've reached a human agent. It's not about "cutting the line" but rather having their system do the waiting instead of you having to stay on hold for hours. The reason it's effective is that most people give up after being on hold for 30+ minutes, which is exactly what the IRS phone system counts on. Having something that can outlast the hold music makes a huge difference.
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Ahooker-Equator
I have to eat crow here. After commenting that nothing could possibly get you through to the IRS faster, I was desperate to resolve a similar 401k rollover issue where my distribution was incorrectly coded. Against my better judgment, I tried Claimyr. I was ABSOLUTELY SHOCKED when I got a call back with an actual IRS agent on the line after about 45 minutes. Previously I had tried calling 6 times and never got through (hung up after 1+ hours each time). The agent confirmed I needed to contact my old plan administrator to issue a corrected 1099-R with the proper code G for rollover. Already have the correction process started. I've never been so happy to be wrong about something.
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Anderson Prospero
One thing nobody's mentioned - if you did a direct trustee-to-trustee transfer (meaning the money went straight from the 401k to the IRA without you touching it), that's the cleanest way to do a rollover. If you received the check yourself and then deposited it, make sure it was within the 60-day window or you could face taxes and penalties.
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McKenzie Shade
•Yes, thankfully I did the direct trustee-to-trustee transfer! The money went directly from my old 401k to Fidelity without me ever touching it. I was worried about that 60-day rule which is why I went the direct route. I'm still a bit confused though - should I expect any documentation from Fidelity showing that they received the rollover, or is the 1099-R from my old plan the only document I need for tax purposes?
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Anderson Prospero
•You made the right choice with the direct transfer! That's definitely the safest approach. For your documentation question, the 1099-R from your old plan is the main tax document you'll need. Fidelity will likely send you a statement showing the deposit into your new IRA, but this isn't something you need to include with your tax return. They may also send a Form 5498 (IRA Contribution Information) that reports the rollover contribution to the IRS, but this is for informational purposes and isn't needed for your tax filing. The 5498 often comes later, sometimes after the tax deadline, which is why it's not needed for filing.
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Tyrone Hill
Watch out for partial rollovers! I only rolled over part of my 401k last year and it caused all kinds of confusion. Make sure your 1099-R shows the correct amount that was actually rolled over.
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Toot-n-Mighty
•This happened to me too! Box 1 showed the total distribution but only part was rolled over. I had to manually input the taxable portion. What a headache.
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Lena Kowalski
Don't forget to check if you had any after-tax contributions to your original 401k! If you did, part of your distribution might be non-taxable even without considering the rollover status. This will be shown in Box 5 of your 1099-R as the "Employee contributions/Designated Roth contributions or insurance premiums.
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Ethan Wilson
Great question! Yes, you'll definitely receive a 1099-R form, and it will come from your old 401k plan administrator (not Fidelity). Since you did a direct trustee-to-trustee transfer, this should be a non-taxable event, but you still need to report it on your tax return. The key thing to look for when you receive the 1099-R is Box 7 - the distribution code. For a direct rollover like yours, it should show code "G". If it shows anything else (like "1" or "7"), you'll want to contact your old plan administrator to get it corrected, as those codes could trigger unnecessary taxes. You should receive the 1099-R by January 31st, so definitely wait for it before filing your taxes. Even though the rollover isn't taxable, the IRS needs to see that you properly reported the distribution and rollover on your return. Most tax software will walk you through this process once you have the form in hand. Congratulations on making a smart move with the direct transfer - that's the cleanest way to avoid any potential issues with the 60-day rollover rule!
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Freya Andersen
•This is really helpful, thank you! I'm relieved to hear that the direct transfer was the right approach. One follow-up question - if for some reason the distribution code on my 1099-R isn't correct (like you mentioned), how difficult is it typically to get the old plan administrator to issue a corrected form? I'm worried about potential delays that could affect my tax filing timeline.
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