Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.
Upon leaving my former employer, the proceeds of my 401(k) plan were distributed to a pre-existing individual rollover retirement account. A form 1099-R was filed by the payer. What documentation must I include with my Form 1040 to advise the IRS that this distribution went into an IRA and not my pocket? I am 63 years old.
Yes, you need to report the distribution on your Form 1040 for 1999. You should report the gross distribution that you received on line 16a of the 1040. You would not report any amount from the distribution as taxable on line 16b since you rolled over the distribution directly into another qualified retirement account.
Aaron Bloom, CPA, Ribis, Jones & Maresca, PA
The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.
To ask a tax question, call Sundial, The Sun's telephone information service, at 410-783-1800. Call 410-268-7736 in Anne Arundel County, 410-836-5028 in Harford County, 410-848-0338 in Carroll County. Using a touch-tone phone, punch in the four-digit code 6225 after the greeting. You can also submit questions by e-mail through The Sun's Web site, www.sunspot.net. Click on Business.
Selected questions will be answered in the Business section. No questions will be answered personally.