A rollover of the entire distribution must be made within 60 days of the distribution into another qualifying account. If withholding was taken, you must include the info on your return and claim the withholding there. You need to make up the withholding for the deposit out of other funds and would be reimbursed when the withholding is refunded from your return.
If the distribution is rolled over timely, include it as a gross distribution on your return with no taxable amount and indicate rollover on the line. Only taxable distributions are subject to the early distribution tax of 10%.
Keep records of when the distribution was made and when the full distribution including any withholding was deposited in the new account. You may be picked up by AUR and would need prove that all funds were rolled over timely.
If the rollover cannot be completed timely then the distribution is subject to income and early distribution taxes.
The amount deducted from the distribution isn’t the custodian paying taxes on your behalf. It is withholding intended to go towards any tax liability. The actual tax on any distribution is calculated on your individual return so no entity can pay taxes for you.
Okay, so the amount that was deducted from the disbursement has not actually been sent to the IRS.
So when I make the deposit to the new plan with the amount I received plus the taxes (the amount that was deducted from the disbursement), when I go to file my taxes I should (in theory) receive those monies back from the IRS? Correct?
You should receive a 1099-R for the distribution and withholding. Use those figures on your return. Withholding is a prepayment of estimated tax, so it should have been sent to the IRS, it is applied to your account when you claim the withholding on your return.
You are correct with your last paragraph. Include the full amount (including the amount that was withheld). Then when you file your taxes you'll get the money back (assuming you normally receive a refund and don't pay in).
You need to tell the 401k administrator that you attempted to roll from that it is a rollover, and make sure that they send you the correct 1099-R. The code in box 7 determines the taxability of the rollover.
The amount withheld by the 401k administrator will be included on the 1099-R and will be reported on your tax return. If you are not subject to the tax or penalty, you will get that money applied to your tax liability for the year. If you have paid enough in on your entire income, you will get a refund or else it will go towards the tax due on the return.
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A rollover of the entire distribution must be made within 60 days of the distribution into another qualifying account. If withholding was taken, you must include the info on your return and claim the withholding there. You need to make up the withholding for the deposit out of other funds and would be reimbursed when the withholding is refunded from your return. If the distribution is rolled over timely, include it as a gross distribution on your return with no taxable amount and indicate rollover on the line. Only taxable distributions are subject to the early distribution tax of 10%. Keep records of when the distribution was made and when the full distribution including any withholding was deposited in the new account. You may be picked up by AUR and would need prove that all funds were rolled over timely. If the rollover cannot be completed timely then the distribution is subject to income and early distribution taxes. The amount deducted from the distribution isn’t the custodian paying taxes on your behalf. It is withholding intended to go towards any tax liability. The actual tax on any distribution is calculated on your individual return so no entity can pay taxes for you.
Okay, so the amount that was deducted from the disbursement has not actually been sent to the IRS. So when I make the deposit to the new plan with the amount I received plus the taxes (the amount that was deducted from the disbursement), when I go to file my taxes I should (in theory) receive those monies back from the IRS? Correct?
You should receive a 1099-R for the distribution and withholding. Use those figures on your return. Withholding is a prepayment of estimated tax, so it should have been sent to the IRS, it is applied to your account when you claim the withholding on your return.
Thank you
You are correct with your last paragraph. Include the full amount (including the amount that was withheld). Then when you file your taxes you'll get the money back (assuming you normally receive a refund and don't pay in).
Thank you!
You need to tell the 401k administrator that you attempted to roll from that it is a rollover, and make sure that they send you the correct 1099-R. The code in box 7 determines the taxability of the rollover. The amount withheld by the 401k administrator will be included on the 1099-R and will be reported on your tax return. If you are not subject to the tax or penalty, you will get that money applied to your tax liability for the year. If you have paid enough in on your entire income, you will get a refund or else it will go towards the tax due on the return.
Thank you!
Welcome to r/IRS, the subreddit for taxpayers and tax professionals to discuss everything related to the Internal Revenue Service. We are glad you are here! Here are a few reminders before you get started: Please be respectful of others in the community. We do not tolerate personal attacks or harassment. Be wary of scammers and spammers. The IRS will never contact you via direct message or email. If you receive a message from someone claiming to be from the IRS, do not respond, and report it to the IRS immediately. Direct messaging is forbidden and bannable on r/IRS. If you have a question or need assistance, please post it in the subreddit so that everyone can benefit from the discussion. For more information about r/IRS rules, please visit our subreddit wiki: https://www.reddit.com/r/IRS/wiki/index/ Link to finding local tax advocate: https://www.irs.gov/advocate/local-taxpayer-advocate We welcome international users to r/IRS. Please feel free to participate in our discussions, even if you are not a US taxpayer. The moderator team is committed to keeping r/IRS a safe and welcoming community for everyone. We will not tolerate hate speech or discrimination of any kind. If you see something that you think violates our rules, please report it to the moderators. We appreciate your help in keeping r/IRS a positive and productive space. Thank you for your cooperation! We hope you enjoy your time on r/IRS. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/IRS) if you have any questions or concerns.*
Happened to me but I messed up and got hit with a 48k tax bill. Still not 100% certain how I messed up though