It is important to timely and properly report the movement of funds from retirement plans or IRAs to a Solo 401k plan in order to avoid tax penalties and unnecessary tax filing or corrections in later years. Therefore, we have put together the following procedure for reporting transfers and direct rollovers from other retirement plans to a Solo 401k plan.
Did you process any transfers/direct-rollovers to your new Solo 401k plan? If yes:
You will receive or may have already received a form 1099-R from your former retirement account institution if you transferred or directly rolled over IRAs or retirement plans such as a 401k, 403(b), 457, TSP, PSP, Pension Plan or a Defined Benefit Plan to your Solo 401k in the latest tax year.
Common transfer/direct rollover to Solo 401k questions
QUESTION: Why did my former financial institution issue a Form 1099-R?
ANSWER: The IRS requires the releasing financial intuition to issue a Form 1099-R if you transferred or rolled over retirement funds to a Solo 401k plan.
QUESTION: Am I required to report information listed on Form 1099-R?
ANSWER: Yes, transfers and direct rollovers from retirement accounts to a Solo 401k plan are reportable on Form 1040 or Form 1040A.
QUESTION: I had my former financial institution make a direct rollover from my former employer plan or IRA into my Solo 401k account. Why am I receiving a Form 1099-R?
ANSWER: The IRS requires a trustee of an employer-sponsored retirement plan or IRA to report direct rollovers from the plan or IRA on Form 1099-R. However, direct rollovers are not taxable only reportable if you directly rolled over your former employer-sponsored plan, existing Solo 401k or IRA account into a Solo 401k account.
QUESTION: How do I report the transfer/rollover on my personal tax return?
ANSWER: Reporting the transfer/rollover of your retirement funds on your personal tax return will depend on whether your transferred/rolled funds from an IRA or a qualified plan (e.g., 401k, defined benefit plan, pension plan, etc.).
If funds were transferred from an IRA, SEP IRA or SIMPLE IRA , report the transfer/rollover as follows:
– If you file Form 1040A, enter distribution amount on line 11a; enter 0 in box 11b and write “Rollover to 401k”
– If you file Form 1040, enter distribution amount on line 15a; enter 0 in box 15b and write “Rollover to 401k”
On the other hand, if funds were transferred from a former employer 401k, pension plan, or another Solo 401k, report the transfer/rollover as follows:
– If you file Form 1040A, enter distribution amount on line 12a; enter 0 in box 12b and write “Rollover to 401k”
– If you file Form 1040, enter distribution amount on line 16a; enter 0 in box 16b and write “Rollover to 401k”
Breakdown for Form 1099-R
If Transfer/ Direct Rollover were processed:
– Box 1″Gross Distribution” lists the amount distributed from former employer 401k or Pension, SEP, SIMPLE or Traditional IRA.
– Box 2a “Taxable Amount” should read 0 since you processed a direct rollover, meaning the check was made payable in the name of your Solo 401k f/b/o your name as TrusteeBox 7 “Distribution Code” must list code G–direct rollover.
IMPORTANT: If any code other than code G is listed in box 7, contact the releasing 401k or IRA institution immediately and request the issuance of a corrected form 1099-R listing code G.
박재범 Jay Park – Solo (Feat. Hoody) Official Music Video
박재범 Jay Park Single
[ Solo (Feat. Hoody) ]
Prod. by Cha Cha Malone
AVAILABLE 09/24/2015 12:00 (local time)
Music Video Directed by Jinooya Park
@ Jay Park
Tweets by JAYBUMAOM
Tweets by AOMGOFFICIAL