ToddL99
Expert Alumni

Retirement tax questions

No, a 401K to IRA rollover will not disqualify you from an economic stimulus payment - it is technically considered income, but it is NOT taxable income (provided your rollover was done properly and to a Traditional IRA).  It will not affect  your AGI or taxable income.  

 

You can see how this is reported on a 2020 Form 1040 by looking at lines 5a and 5b. Line 5a will show the full amount of the rollover distribution, but line 5b will show "0" as the amount of taxable income. 

 

2020 Form 1040

 

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