IRA Rollover

Archive for May, 2007

Question: I changed my job so my 401k money went to principal saving account as principal was handling it earlier?

And I forgot to transfer / rollover to other IRA or such program now this money is just sitting in Principal saving account.
I got 1099-R which shows that amount as gross distribution but does not show any tax withheld or
anything.
The code is still G
Is ira is going to put penalty cuz i have not rollover this money since its been over 60 days
Please advice

Thanks in advance

Sunny

Answer: You DID to a direct rollover. Code G is for a direct rollover. The rollover should be shown in box 1 and box 2 should be blank.

You’ll show the gross distribution on your tax return on line 16a of Form 1040 but show the taxable amount as $0 on line 16b. No tax or penalty is involved in a direct rollover.

401k Transfer