Forgot about my rollover… how bad is this?

So, I totally forgot that I rolled over about $1,500 from two old teacher retirement accounts straight into my 401k at my last job. I left that job last year to start my own business and already filed my taxes. Just got the forms in the mail, and now I’m freaking out. How bad is this? Do I have to go back to my accountant? Really don’t want to deal with that if I don’t have to.

I’d check with your accountant. That’s what they’re there for.

If it was a direct rollover, it usually doesn’t trigger taxes. But if you got a 1099-R, you might need to file an amended return. Did you actually pay taxes on the rollover, or just on your income from self-employment?

@Ariya
I had to pay taxes on my self-employed income, not the rollover. The 1099-R shows $0 taxable amount in box 2a, and the account number has ‘Roll’ on it.

Hayden said:
@Ariya
I had to pay taxes on my self-employed income, not the rollover. The 1099-R shows $0 taxable amount in box 2a, and the account number has ‘Roll’ on it.

Then you’ll probably need to file a 1040X. Since the rollover isn’t taxable, you shouldn’t owe anything or get a refund, so it’s not urgent. If your tax software charges for amendments, you might even be able to do it manually—it’s a pretty simple fix.

Here’s a guide from TaxAct on how to report rollovers:

@Ariya
Never heard of a 1099-X. Amended returns are done with a 1040X. You can file that, or just wait and see if the IRS sends a letter. Since it was a direct rollover, you shouldn’t owe anything.

Kiran said:
@Ariya
Never heard of a 1099-X. Amended returns are done with a 1040X. You can file that, or just wait and see if the IRS sends a letter. Since it was a direct rollover, you shouldn’t owe anything.

Yep, my bad. I need my coffee.

Kiran said:
@Ariya
Never heard of a 1099-X. Amended returns are done with a 1040X. You can file that, or just wait and see if the IRS sends a letter. Since it was a direct rollover, you shouldn’t owe anything.

Honestly, I might just wait and see if they contact me. With all the budget cuts, maybe they won’t even bother since I don’t actually owe anything. I never touched the money—it went straight to Fidelity. Checks were made out to them for my benefit, and I just sent them the paperwork and photos of the checks.

@Ariya
I already paid an accountant for my taxes, and now I have to deal with this? Super frustrating. If it was a direct rollover, why is this even an issue? I’m drowning in paperwork running my new business. Thinking about just saying screw it and seeing what happens. Maybe I should’ve just stayed at a soul-sucking corporate job instead. Thanks for the info, though. I’ll figure this out when I have the energy.

@Hayden
I get it, paperwork sucks. I’d still ask your accountant—some of them just wait and see if the IRS says anything before filing an amendment. Since there’s no tax owed, it’s just a matter of reporting it properly.

@Hayden
Worst case, you get a CP2000 notice later in the year. If that happens, you just send them proof it was a rollover, and they’ll drop it.

Check the distribution code in box 7 on your 1099-R. If it’s ‘G,’ the IRS already knows it was a direct rollover, and they probably won’t even contact you.