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 or other tax-deferred account is directly rolled over to another retirement plan that is also tax-deferred and not a Roth designated account, 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
If you find that your Form 1040 is incorrect, please follow up with more information. Otherwise, there should be no issues with ignoring the message onscreen and clicking the button to indicate that your information was entered correctly.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
