RaifH
Expert Alumni

Retirement tax questions

If the only distribution from your 401(k) was rolling it over into your traditional IRA, then that should not be taxable. Make sure you entered it in this manner:

  1. Go to Federal > Wages & Income > Retirement Plans & Social Security > IRA, 401(k), Pension Plan Withdrawals (1099-R) and click Start / Revisit.
  2. Continue through the screens to import or enter your 1099-R form.
  3. When asked Tell us if you moved the money through a rollover or conversion select I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days) and Continue.
  4. On the next screen, Did you roll over all of this (Box 1) to another retirement account? answer Yes, I rolled over to an IRA or other retirement account (or returned it to the same account) and Continue.

You may not receive all these questions depending on the distribution code on Form 1099-R, but as long as you said it was rolled over into another IRA, the distribution is not taxable. 

 

You can preview your 1040 to make sure it is not being taxed:

 

You can preview your 1040 by:

  1. Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
  2. With the Tax Tools menu open, you can then: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.
  3. Scroll down until you see Form 1040 Line 5. Line 5a should have the entire distribution amount. Underneath, it should say ROLLOVER, and line 5b should be blank.

 

@chapjim