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Retirement Plan Being Rolled Over

Updated: Jan 20

What is a rollover?

It's regarding your individual account rollover, and it means that you moved, funds from your retirement account to either your traditional IRA or Roth IRA.


Types of roll overs:

a. Direct - This type of rollover occurs when the employer or plan administrator makes a payment to another retirement plan or IRA in the taxpayer's name. If you have this type of rollover, the taxable amount is being reported on your 1099-R in Box2a, and it should be zero. The code for this is G and you can see it in Box 7.

b. Trustee to Trustee - It occurs when your existing IRS institution sends payment directly to another financial institution or account. Taxes are not typically withheld from those transfers. This is just the same code and amount ad the direct rollover.

c. 60 day - means that the payment is made directly to the taxpayer and taxes are withheld from the amount. Taxpayer has 60 days to deposit the distribution into another IRA account or retirement plan.

Codes:

(In Box 7) - Code 1 - under 59.5 at the time of distribution.

Code 7 - over 59.5

Taxable amount (in box 2a) - may be the same as the gross distribution in box1 or may be blank.

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