Hello again red,
Even if the broker who handles your company's 401k account went to a new company, that would not be reason for a withdrawal of your funds. But if the actual investment firm was changed, then they could be the reason this occured, but you are really going to need to verify that information with your employer, because no one else would have that information.
Anytime that you move retirement funds from one investment firm to another (as long as it is done within 60 days of each other) it is considered to be a rollover. You would receive a 1099R form showing that the money was taken as a distribution
, but at the same time you would indicate that the same amount was rolled over in to a new plan, and therefore eliminate any tax that was due by treating it as an outright withdrawal.
You cannot just ignore the form 1099R and not report it, because the IRS
will also have a copy and will be looking for it to be reported on your return
What seems very odd to me is that if your company did choose a new investment firm to handle your 401k account, they would normally advise their employees of the situation, so you would know why you were getting this 1099R form. In addition to that, I would certainly think that you would have been given new paper work by your employer to fill out for the new investment firm, as a new investment firm should not just take the information based on what you had on file with the previous firm. As a new account holder with a new firm, you generally start all over by filling out your account application with your personal
information, and indicating your beneficiaries
, etc. In addition to that, if they did choose a new investment firm to handle their 401K plan, then the new investment firm would have different funds for you to choose from for your investment choices, and you should have been given access to all that information.
So as I said previously, you are really going to need to verify with your employer just exactly what caused this form to be issued. If it was a rollover situation, then you simply report the amount as a distribution on your tax return, and at the same time indicate the entire amount was rolled over in to a new account. That will eliminate any tax being due.
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