Retirement Savings and Benefits
Questions and comments about IRAs, 401k accounts, social security, and other forms of retirement savings and benefits.
Traditional 401k Rollover to Regular IRA
Posted by: b1_lee, April 2, 2017 01:12AM
My wife retired in 2016, she received 2016 Form 1099-R. Company told her it is a non-taxable event, but she has to provide info on her 2016 return.

Box 1 = her gross distribution amount, Box 7-Distribution code="G" - direct rollover of a distribution to a qualified plan

Question #1 - Where will she have to provide & offset the amount so that it will not impact AGI?

Question #2 - What she has to do to her 2016 Illinois return?

Question #3 - When she take a partial distribution or partial conversion to Roth IRA, where will she report the amount in Federal return & Illinois return?

Question #4 - My understanding is Illinois does not tax the distribution or Roth conversion, where she has to do to her Illinois return?

Re: Traditional 401k Rollover to Regular IRA
Posted by: Alan S., April 2, 2017 05:13PM
Q1- Report on lines 16a and 16b of Form 1040 with "rollover" entered next to 16b.

Q2- not familiar with IL SIT

Q3- For a conversion, report on Form 8606 with taxable amount from the 8606 shown on Form 1040, line 15b. A non conversion distribution just goes on line 15 unless there is basis in the TIRA, then an 8606 is needed for that as well.

Q4- see above.

Perhaps someone familiar with IL can comment.

Re: Traditional 401k Rollover to Regular IRA
Posted by: Benn, April 3, 2017 02:06AM
To expand on Alan's answer to your Q1, you should put the amount in box 1 of the 1099-R into line 16a, leave line 16b blank, and enter "Rollover" in the space next to line 16b. This will allow the rollover to be untaxed, as should be the case assuming it was rolled over to a Traditional IRA. Most tax software will also do it this way.

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