Even though you are getting a message on the screen that your distribution code is incorrect for the situation you described, take a look at your actual Form 1040 to see if the tax treatment is correct without changing your entries.
When a Traditional IRA is directly rolled over to another retirement plan that is also tax-deferred and not a Roth designated account, the Form 1040 should show the distribution amount on line 4a with ROLLOVER beside it. Line 4b should be '0' indicating that there is no tax consequence.
In TurboTax Online, use the following steps to check your Form 1040 while you are in your tax return:
- In the navigation area on the left side of your screen, click Tax Tools to expand your choices
- Click Tools, which will open the Tool Center
- Click View Tax Summary under “Other Helpful Links…”
- Click Preview My 1040 to see your actual tax form
In order for us to take a closer look at the error message you are seeing on screen, it would be helpful to have a diagnostic copy of your tax return. The diagnostic file will not contain personal identifiable information, only numbers related to your tax forms.
To do so, follow the instructions below and post the token number along with which version of TurboTax Online you are using in a follow-up thread.
Use these steps:
- Sign in to your account and be sure you are in your tax return.
- Select Tax Tools in the menu to the left.
- Select Tools.
- Select Share my file with agent.
- A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
- Post the token number here.
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