401k Rollover Tax

[hfyzd47]

Hi there,

In August 2024 I requested a complete rollover from my previous employer's 401k to my current one's 401k plan. It has both a Roth portion and a traditional portion (employer's matching) and I rolled them into corresponding type in my current employer's 401k.

The rollover was performed through two checks which were addressed to my current 401k plan company (Fidelity), though were mailed to my home address and I deposited the checks through phone app.

I received two 1099-R forms from my previous 401k plan. For the traditional portion of the rollover, my 1099-R showed in 2a block $8500. As a result, when I input it on my TurboTax, this increases my tax by over $2000, corresponding to my income brackets. 

I confirmed with Fidelity that since the rollover was addressed to Fidelity on the checks, this $8500 is not supposed to be taxable since it would be taxed again after I withdraw it after retirement. But how can I avoid such double taxation from Tax Year 2024?

[MaryK4 · Accepted solution]

In TurboTax, after you enter the 1099-R you must continue through the follow-up questions.  One question asks what you did with the money and you can indicate it was a full or partial rollover.