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Retirement tax questions
These are both "income" in the sense that both distributions must be reflected on your tax return, but the amount rolled over will not add to taxable income. The code G Form 1099-R for the direct rollover that has $0 in box 2a will have the gross amount be present on Form 1040 line 5a but will be absent from the taxable amount on line 5b. The word ROLLOVER will appear next to the line.
TurboTax's summary combines taxable and nontaxable income to indicate the total of the gross amounts reflected on your tax return.
‎February 19, 2021
10:59 AM