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Subject Author Date
Year End IRA Withdrawel With Next Year Rollover William Brenner 12-04-2006
Posted by GORILLA on December 5, 2006, 9:47 pm
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 William Brenner wrote:

> Scenario: Funds are withdrawn from an IRA in December 2006
> and rolled over in January 2007.
>
> Must the withdrawal be reported as 2006 income to comply
> with the 1099-R that will be issued? (I think I know the
> answer, but ask just in case.)
>
> If yes, how is the rollover handled in 2007?

My experience was rollover from 401K institution to a
Rollover IRA at a different institution. That generated a
1099R from the 401K institution which has the distribution
has a code for rollover.

The 1099R issued by the second institution the conversion to
ROTH had taxes withheld.

The 1099R tax year was respective of when the action executed.

Carl

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<< that may be imposed upon the taxpayer. >>
<< >>
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Posted by Tom Russ on December 6, 2006, 2:04 am
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 William Brenner wrote:

> Scenario: Funds are withdrawn from an IRA in December 2006
> and rolled over in January 2007.
>
> Must the withdrawal be reported as 2006 income to comply
> with the 1099-R that will be issued? (I think I know the
> answer, but ask just in case.)

I'm certainly not a tax pro, but I would expect that as long
as you rolled the funds over within the 60-day period, you
would not include the funds in income. Instead, it would
all be excluded.

The line for reporting the IRA distribution has fields for
taxable and non-taxable amounts. The rollover would make it
non-taxable, and that would reconcile with the 1099-R form.
Crossing the year-end boundary is immaterial.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Ira Smilovitz on December 6, 2006, 2:04 am
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> Scenario: Funds are withdrawn from an IRA in December 2006
> and rolled over in January 2007.
>
> Must the withdrawal be reported as 2006 income to comply
> with the 1099-R that will be issued? (I think I know the
> answer, but ask just in case.)
>
> If yes, how is the rollover handled in 2007?

The 1099-R doesn't indicate that the distribution was a
rollover, except when it's a direct transfer. You report the
full distribution and that $0 of the distribution is taxable
on your 2006 return. Nothing is reported on your 2007
return. The IRS will get "confirmation" of the rollover from
the 5498 filed by the IRA custodians.

Ira Smilovitz

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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