I had a pension plan with my old company, and I recently transferred that amount to a traditional IRA. Is this tax deductible? If yes, I do see Form 5498 online from my investment account. Do I need a form 1099R from them when I do my tax return this year?
Direct rollovers from a pension to an IRA are not taxable. Your pension plan should issue a 1099R. Box 7 of the 1099 should include code G (direct rollover). There should be nothing in box 2a for taxable amount.
You will only get a 1099R from your investment account if/when you take a distribution or withdraw from the IRA.
Please don't forget to double check your 1099s and other tax forms for accuracy.
For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.
Answered by: Tami Noll Russo, CPA, is a certified financial planner with Noll Financial Services in Middletown, Pa.