Last year I was notified to do something with my former employer's 401K. I could either roll it into another 401K (didn't have one with my job then), cash it out, or rollover to a traditional or Roth IRA. I chose a traditional one.
My question is, do I have to claim anything on my income tax return for 2016? I was sent a form from Fidelity (who had my 401K) and have an online form from the IRA holder. Since I'm not withdrawing or contributing anything, do I pay tax on it?
No, taxes on a traditional IRA or 401K are not payable until you convert the funds from a tax deferred retirement account to income.
"Things should be made as simple as possible, but not one bit simpler." ~ Albert Einstein
If you simply rolled it over... and did not have it in your hands.... no taxes are paid until you cash out all or part of the traditional IRA.
Whew, thanks.
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