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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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I got a check from my previous companys Pension plan on 12/01/2008

Resolved Question:

I got a check from my previous company's Pension plan on 12/01/2008 and I rolled it over to a Traditional IRA on 01/28/2009. I filed my taxes in February,2009 for the tax year 2008 taking into account the 1099-R and got the refund for the 20% tax which was withheld. I got a notice yesterday that I underreported the income by exactly the same amount as the pension distribution. I want to know what went wrong and how to correct it. Please note I did not receive any 5498 from the IRA custodian.
Submitted: 7 years ago.
Category: Tax
Expert:  Marvin,EA replied 7 years ago.

Hello and thanks you for using Just Answer. You must get Form 5498 reporting the rollover from the IRA custodian. When you received Form 5498 from the IRA custodian, send a copy of the form and all records of the rollover to the address listed on the IRS letter you received with a statement that you received the pension's check on 12/01/2008 and completed the rollover on 01/28/2009.

Customer: replied 7 years ago.
Thanks for the quick response Marvin. I just want to confirm before I send the response that received the distribution in tax year 2008 but completed the rollover in tax year 2009. Is it mandatory that the rollover be done in the same year? Is it mistake on my IRA custodian part not to send the 5498 or he is obligated to send the 5498 for the tax year 2009 ( since the rollover was in 2009) sometime this month in 2010? Sorry for being so cautious.
Expert:  Marvin,EA replied 7 years ago.

No, it's mandatory that the rollover occurs when you received the distribution and within 60 days reinvests the assets in another eligible retirement plan.


The IRA custodian should have sent Form 5498 to you and the IRS which is the reason the IRS have sent you a notice for underreported income in the amount of the distribution.

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