What should Form 1099-R and Form 5498 show after a direct rollover?

By Kaz · Published 28 September 2026 · How this site checks figures

Summary

For a direct rollover of pretax 401(k) money to a traditional IRA, the Form 1099-R from the old plan shows the full amount in box 1, zero in box 2a (taxable amount) and code G in box 7a (distribution code), and the Form 5498 from the new custodian shows the rollover in box 2. Two cases differ: a rollover into a Roth IRA puts the taxable amount in box 2a, and a Roth 401(k) moving to a Roth IRA carries code H. A code 1 or 7 instead of G or H means the plan reported a payment to you, not a direct rollover.

Box 7a is the number on the 2026 Form 1099-R, where the IRS split the old box 7 into boxes 7a and 7b. A Form 1099-R for 2025 or an earlier year carries the same distribution code in box 7.

What each kind of rollover should look like

Rollover	1099-R box 2a	1099-R box 7a	Form 5498
Pretax 401(k) to traditional IRA	0	G	Box 2
Pretax 401(k) to Roth IRA	The taxable amount	G	Box 2
Roth 401(k) to Roth IRA	0	H	Box 2

The middle row is the exception. Code G only says the money moved directly; it doesn't say the move was tax-free. For a direct rollover to a Roth IRA from anything other than a designated Roth account, the IRS tells the plan to "report the total amount rolled over in box 1, the taxable amount in box 2a, and any basis recovery amount in box 5." You then report the box 2a amount on the "Taxable amount" line of your return. The article on what's taxable when a 401(k) goes to a Roth IRA shows how that figure is reached.

For the top row, the recipient instructions on Form 1099-R are direct: for a direct rollover, "zero should be shown and you must enter zero (-0-) on the 'Taxable amount' line of your tax return." The gross amount still goes on the line for pensions and annuities.

Two 1099-Rs for one rollover

If you rolled part of the balance directly and took the rest, the instructions tell the plan to "prepare two Forms 1099-R." One carries code G. The other reports the payment to you, with the federal tax withheld in box 4, and that copy is the one you attach to your return: Copy B says to attach it "if this form shows federal income tax withheld in box 4."

Reading Form 5498

The 5498 is filed with the IRS by the custodian, and your copy is marked "keep for your records." Box 2 shows "rollover contributions, including direct rollover contributions." Conversions from a traditional IRA to a Roth IRA go in box 3 instead, so a 401(k) sent straight to a Roth IRA belongs in box 2, not box 3. A late rollover you self-certified after the 60 days shows up in box 13a and not in box 2. Box 5 is the account's fair market value at year end.

Sources

Written by Kaz, an independent publisher.
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