Do I need to report my retirement plan balance on my income tax statements?
No. You will only report the amount of money that you take as a distribution, in the calendar year that you received the money. The remainder of the money stays tax deferred until you withdraw it.
Do I need to report the investment earnings on my retirement account on my taxes?
No. Again this money will remain tax deferred until you take a distribution.
If I separate from service or retire and take a distribution, how will I know what dollar amount to report on my taxes?
You will be issued a 1099-R form any time that you take a distribution or roll money into an IRA. The amount you need to include for tax purposes is printed on this document.
What if I originally decide to have my retirement savings sent directly to me and then change my mind and decide to roll my funds over to an IRA?
Generally you have 60 days to roll the payment check into an IRA. However you must make up the amount held for taxes and penalties since that withholding has been deposited with the government.
