Ask Terry Questions retirement funds

retirement funds

By Terry Savage on March 15, 2024 | Financial Planning / Retirement

I sent an email on 3/13 about my husbands retirement funds from his company. It was a rollover from a 401k and a Roth account sent with 2 separate checks made out directly to Ameriprise. We received a 1099R for gains in the Roth account. Is this correct if it was transferred directly to our retirement accounts? I thought there was no tax liability until we took it out.

Terry Says

So, I’m presuming that one portion of the employer account was “roth” — after-tax contributions. This is a relatively new thing.
Obviously either the employer made a mistake in characterizing the rollover– or Ameriprise made a mistake in rolling it into a Roth!

Who sent the 1099? His former employer or Ameriprise? That’s where the mistake occurred –and that’s who has to withdraw the 1099.

Here’s the explanation of how the process SHOULD work from IRA guru, Ed Slott:

If you keep getting the run-around, please write to Ed on his website — They might be able to put some pressure on the “guilty” party!

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