Do I Have to Do Anything on My Taxes if I Did an IRA Rollover Last Year?

Did you roll over an IRA or 401(k) during 2010? Were you told it wasn't taxable?  First the good news: Rollovers aren't taxable.  Now the bad news: Rollovers are reportable, meaning the rollover will somewhat complicate your tax return.

Anyone who rolls over an IRA or 401(k) should receive a 1099-R from the custodian of the account which has been terminated as a result of the rollover. Properly coded, the 1099-R will indicate no taxable amount and also have a letter code of "G" in box 7. (If your 1099-R indicates something different promptly contact the custodian). Still, you must put the entire amount of the rollover on line 15a of Form 1040. Since
you can and should leave line 15b blank, no additional tax will be due as a result of the rollover. However, should you fail to include the information about the rollover on line 15a, it could lead to some unwelcome, if not terribly harmful, IRS correspondence.

Don't keep your rollover information to yourself!  Fill out your taxes properly.


If you still haven't rolled you're 401k or IRA over?  We can help.

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