IRA Rollover

Archive for October, 2007

Question: Will I need to claim my 401k Rollover on taxes this year?

I found out that I had money left in my old employers 401k plan, I rolled it into an IRA in Feb of 2009. Should I recieve something for tax season this year? If so will it be from my old employer and what type of a form will it be.

Answer: No, the reason for doing a rollover is so that you DON’T have to pay taxes on the money. The exception is a Roth IRA – if you rolled your 401k into a Roth (or if you rolled into a traditional IRA and then converted to a Roth), you will have to pay taxes on that money.

If you’re not sure what type of IRA you have (traditional or Roth), contact the fund company (or bank) that holds your IRA and ask them.

I hope that helps.

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