Employer 401K Rolled over into IRA

[RDNKCPA]

I have a client that rolled an employer sponsored 401K account over into a traditional IRA when she left employment with that company. It went from a Fidelity 401K to Fidelity IRA, never left Fidelity.

Fidelity issued her a 5498 with record of her deposit in the IRA.

Shouldn't I see a 1099R for the closing of the employer sponsored account? I know its a non-taxable event, but I want to make sure I have all the documents lined up.

Thanks,

Jason

[kcjenkins]

Yes, there should be one.

[BulldogTom]

You should see a 1099R with a code G. Perhaps it got lost in the mail. I would not worry much about it. Having the 5498 certainly would prove that the funds were re-deposited into an eligible account. Just hold onto that piece of paper if there is ever correspondence from the IRS.

Tom

Hollister, CA

[mcb39]

I heard that they have an extension to Feb 28 to get them out. Just what we all needed. How many returns will have to be amended because they forgot to tell us that they had a rollover?

[Jack from Ohio]

You should see a 1099R with a code G. Perhaps it got lost in the mail. I would not worry much about it. Having the 5498 certainly would prove that the funds were re-deposited into an eligible account. Just hold onto that piece of paper if there is ever correspondence from the IRS.

Tom

Hollister, CA

If it is not included on the return, there is a good chance they will get a CP2000. Had one for tax year 2012. The notice clearly showed the 1099R that was not reported, with code "G" in box 7. Not sure if everyone or all computer systems at the IRS know what the code "G" means.

Therefore, it is best to wait.

[RDNKCPA]

Client had to track the form down with Fidelity. She emailed me the 1099R with code G. All is good. Client got a bit annoyed I was bugging her for the document especially since it is a non-taxable event. After I explained to her it needs to be filed with her return, if it does not the IRS will send a nasty-gram. Once I told her about the IRS nasty gram, she was all about tracking the 1099 down.

Thanks for confirming I wasn't crazy.

[mcb39]

Client had to track the form down with Fidelity. She emailed me the 1099R with code G. All is good. Client got a bit annoyed I was bugging her for the document especially since it is a non-taxable event. After I explained to her it needs to be filed with her return, if it does not the IRS will send a nasty-gram. Once I told her about the IRS nasty gram, she was all about tracking the 1099 down.

Thanks for confirming I wasn't crazy.

None of us are crazy. It's the rest of the world!!!!!

[Gail in Virginia]

Speak for your self, Marilyn. Being crazy is sometimes my only defense!

[kcjenkins]

Clients never seem to like having to track down anything, do they? Yet they would blame us if we ignored the issue and then they got that IRS basty-gram. Especially since the IRS so often words it as "we made a mistake" even in cases where the mistake is clearly theirs.