Author Topic: Need help with 1099-R - $0.05  (Read 389 times)

lefty

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Need help with 1099-R - $0.05
« on: February 07, 2018, 02:49:15 PM »
Back story:
Rolled over my old 401k (Fidelity) to Vanguard (100%) in 2016.
Sometime last year, I get a check from Fidelity for $0.05. I called and they say its just excess from the roll over, just cash it. No worries.

Now:
I have a 1099-R from Fidelity for $0.05. I thought I wouldn't get one if its less than $10.

Questions:
Do I actually have to file taxes for this $0.05 1099-R ?
Tried to use Turbo Tax free version, I couldn't include the 1099-R unless I got the Deluxe version for $40.

Any simple solution here?





 

Lucky Recardito

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Re: Need help with 1099-R - $0.05
« Reply #1 on: February 07, 2018, 03:04:46 PM »
If you try to plug in 5 cents, it'll just round down to 0 on your tax forms anyway. I wouldn't worry about it.

lefty

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Re: Need help with 1099-R - $0.05
« Reply #2 on: February 07, 2018, 03:08:18 PM »
Meaning, just forget about it?
« Last Edit: February 07, 2018, 03:16:00 PM by lefty »

MDM

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Re: Need help with 1099-R - $0.05
« Reply #3 on: February 07, 2018, 03:36:50 PM »
Meaning, just forget about it?
Yes, just the same as you would if you found a nickel on the ground.

seattlecyclone

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Re: Need help with 1099-R - $0.05
« Reply #4 on: February 08, 2018, 12:10:54 PM »
If you (like most people) round everything to the nearest dollar on your tax return, this should not affect your taxes at all unless you got another taxable 1099-R with a remainder between 45 and 49 cents, making the extra nickel cause the rounded value you would report to go up by a dollar.
I made a blog! https://seattlecyclone.com/

The Roth IRA was named after William Roth, who represented Delaware in the US senate from 1971-2001. "Roth" is a name, not an acronym. There's no need to capitalize the final three letters.

lefty

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Re: Need help with 1099-R - $0.05
« Reply #5 on: February 09, 2018, 05:57:08 AM »
I see. I guess at this point it doesn't matter if I am below the age of 59 1/2. I was thinking along the lines of the IRS auditing due to a document I did not submit.

Sibley

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Re: Need help with 1099-R - $0.05
« Reply #6 on: February 09, 2018, 06:00:17 AM »
The IRS is understaffed, overwhelmed, and the audits that get done are the really big returns. You're fine.

seattlecyclone

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Re: Need help with 1099-R - $0.05
« Reply #7 on: February 09, 2018, 10:16:05 AM »
I see. I guess at this point it doesn't matter if I am below the age of 59 1/2. I was thinking along the lines of the IRS auditing due to a document I did not submit.

I mean...if you're really worried about it you could always file a Form 5329 calculating your early withdrawal tax based on an early withdrawal of $0, but I don't know of any reason why the IRS would penalize you for not doing that.
I made a blog! https://seattlecyclone.com/

The Roth IRA was named after William Roth, who represented Delaware in the US senate from 1971-2001. "Roth" is a name, not an acronym. There's no need to capitalize the final three letters.