SEP rolled to ROTH

[Possi]

I rolled my SEP to a ROTH in 2010. They were supposed to withhold on that, and split it between 2 years.
Instead, I just received a 1099R for the full amount, bx 7 code 2. Oh, and there is no withholding. No wonder the company went out of business. They could screw up a dirt sandwich.

I am sure I will be getting many of these this year, so I'm glad it happened to me first. Since the 1099R says the full amount, does that require me to take the hit this year? I'm thinking....... YES!

[BP.]

Since the 1099R says the full amount, does that require me to take the hit this year? I'm thinking....... YES!

No, you don't have to. The 1099-R should show the full conversion amount. On your tax return use Form 8606 Part II to either elect to pay tax this yr or spread income over 2011 & 2012. Also, better there was no FIT w/h.

[Possi]

I Got It!

Thanks~~ that took care of it alright...

I was not sure how that would be reported, and almost dropped my teeth when that 1099R hit me! WHEW!
I'll do a little backup withholding in '11 and '12 on my W2 to cover that.

Thanks again~

[BP.]

Thanks~~ that took care of it alright...

I was not sure how that would be reported, and almost dropped my teeth when that 1099R hit me! WHEW!
I'll do a little backup withholding in '11 and '12 on my W2 to cover that.

Thanks again~

Donna, I'm following the tip on TTB 13-14. top left.
Barb