Hello,

In 2005 I rolled over my entire 401k from a previous employer to my current employer's 401k. Do I need to state this rollover anywhere when filing my taxes for 2005?

Also, in 2004 I forgot to state a small dividend that I received. Can I add that dividend from 2004 to the taxable interest I received in 2005 and state it in my 2005 taxes or do I need to state that dividend separately?

Thank you for your help!

JBM9913:

You DO have to report the rollover, which should be documented by Form 1099-R, on Line 16a of Form 1040 or Line 12a of Form 1040A. No taxes will be due.

You cannot report 2004 income on your 2005 tax return. The only way to correct the problem is to amend your 2004 tax return.

However, if the dividend is less than $50, do not worry about it, as it is likely not to have any net effect on the amount of taxes due. Even if additional taxes were due, it will probably fall in the category of de minimus (too small to be worth the effort) and the IRS will not follow-up unless the additional tax exceeds $50.