@Celtic1001 wrote:
This does not seem correct to me, that a complete rollover to another 401K would be counted as income. I did not have access to the funds and never took possession of the funds at any time. Why does this affect my adjusted gross income.
A 401(k) rollover is reported on the 1040 form line 5a as income, but not taxable income as indicated by a zero on line 5b with the word ROLLOVER next to it. It is NOT included in AGI and does not affect the tax.
(It it was not income then the IRS would not require that it be reported on an "income" tax return.)
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
