Chapter 5 - Rollovers from Employer Plans However, if the check is made payable to the IRA owner, then report the full amount in Box 1 and Box 2a, and use Code 1 or 7 in box 7 depending on the IRA owner's age. The Traditional IRA holder then deposits the funds to the receiving WRP within 60 days. The Traditional IRA holder also needs to report the distribution on his federal income tax return. But because the receiving WRP does not report rollovers on IRS Form 5498, no information is sent to the IRS to show that the IRA distribution was ever actually rolled over tax-free to the WRP. The IRS Form 1040 instructions indicate that the taxpayer should include a statement with their federal income tax return explaining the rollover to the WRP. Note: Not all QRPs, 403(b) plans, or governmental section 457 plans accept rollovers from Traditional IRAs. IRA Digital Reference Manual © PMC