What is the difference between a “designated” IRA and an IRA that is not “designated”?

Question

In 2019 I rolled over a 401k from a former employer.  The 401k manager (Fidelity Investments” sent me a 1099-R. I have reached a point in my tax return form that asks if the money rolled over into a “designated” IRA or not. I have tried the “yes” and the “no” options as trials and neither answer changes the result of my taxed amount. (All boxes for taxable amount are 0.00).  But I don’t want to answer incorrectly. Any help in this would be appreciated.

STEVEN F · Answer

In this context, it means an IRA opened specifically to accept the rollover, as opposed to an IRA with other funds.

NA · Answer

I think you misread the question.  A 401k with a Roth feature is a designated account and would have basis (after tax contributions) that has to be tracked separately.

Also inherited accounts are designated in titling.

Anonymous · Answer

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What is the difference between a “designated” IRA and an IRA that is not “designated”?

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