Just wanted to post the final 'solution'. It turns out that
H&R Block was wrong and that transfer should not have been
taxable. I called the company that issued the transfer and
they confirmed that they actually made a mistake on my
1099-R.

They have since sent me a corrected 1099-R.

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"Herb Smith" <smithff33[at]aol.com> wrote:
- quote -

What are the numbers in box 7 of the 1099?

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markbouchard[at]gmail.com wrote:

- quote -

Did you get a 1099-R form for the rollover (either one?)

What was the distribution code in box 7?

-Mark Bole
http://www.bincomputing.com

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cpabakem01[at]yahoo.com writes:

- quote -

That hasn't been true since 2001-ish.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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<cpabakem01[at]yahoo.com> wrote:

- quote -

This is no longer true. See IRS Publication 590.

--
Phil Marti
Clarksburg, MD

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These distributions can be combined with an existing IRA or
into a separate IRA. If you create a separate IRA for your
rollover, you can easily move these funds to another
employer sponsored plan in the future. It's a good idea to
keep your rollover IRA separate from any other IRA's you
might have because once you make contributions to a rollover
that are not from a company sponsored plan, you lose the
right to move this rollover to a company sponsored plan.

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Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote:
- quote -

I agree. What's fishy about this is that the tax treatment of
rollovers is pretty basic stuff. While a lot of folks around
here don't care for Block, my bet is that Block understands a
rollover. <grin
Obviously Block doesn't think one or more of your transfers
was a qualified rollover. So I suggest you ask Block the
following: "I believe all rollovers were qualified and thus
tax-deferred. If you disagree, which one was not, and why?"

Then come back here and tell us what they say.

-HW "Skip" Weldon
Columbia, SC

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markbouchard[at]gmail.com wrote:

- quote -

It sounds like you did it right. Why does H&R even know
about this? Your forms should all show the direct rollovers,
you preserved the pretax staus with the direct rollovers,
and the ability to put it into anothe 401 by using a
rollover IRA and not comingling with another IRA. You should
seek a professional.

JOE

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markbouchard[at]gmail.com wrote:

- quote -

HRB is wrong.

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markbouchard[at]gmail.com writes:

- quote -

Sounds like HRB is wrong, unless there's some complication
to the story you're not telling us about.

If it is a properly-executed trustee-to-trustee transfer
from a trad IRA to a 401(k) it shoulnd't be taxable.

As a sidenote, why did you roll it back into the 401(k)
in the first place?

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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<markbouchard[at]gmail.com> wrote:

- quote -

See IRS publication 590 pages 23 - 25 under "conduit IRA".
Here's the link http://www.irs.gov/pub/irs-pdf/p590.pdf Tho
there may be additional facts that would change the
analysis, it sounds as tho you are right and H&R Block is
wrong -- which isn't surprising. H&R Block probably does
more to help the US Treasury than even the IRS.

Bob Daniels (Usual disclaimers... free advice is worth the
price, can't rely for penalty protection, etc.)

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<markbouchard[at]gmail.com> wrote:

- quote -

You drew one of the manicurists rather than one of the
competent Block preparers. Complain to the office manager
and get someone else.

Both your rollovers were nontaxable events.

--
Phil Marti
Clarksburg, MD

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Hello all,

I worked for a company that went bankrupt. At the point of
bankrupcy, the money from our 401ks was moved into a
Rollover IRA.

At my new job, i rolled the money from this Rollover IRA
directly into my new 401k plan. it was a trustee to trustee
transfer, and the rollover was excepted.

I am now being told that this money is taxable and that i'm
subject to the 10% tax because the money was withdrawn from
the Rollover IRA. H&R Block is the one telling me this.

But, i really thought and believed that this money was NOT
taxable at this time, as i would end up being taxed twice.
Once now, and once again when i removed the moeny from the
401k.

Anyone have any thoughts?

Thanks

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