You should enter your Form 1099-R into TurboTax exactly as it is shown. And answer all follow-up prompts and questions. TurboTax will properly enter these amounts on your tax return as required.
The code in distribution box 7 of your Form 1099-R should indicate whether you did a direct rollover to a qualified plan (your new 401(K). That is how TurboTax will know what kind of distribution this is (such as that it was a direct rollover) and tax it properly.
It does not sound like you did a direct rollover. If you did, you would have received a 1099-R with a distribution code in Box 7 of "G". And this would not be a taxable event.
If this was not a direct rollover, i.e. you took out the money and then rolled it over yourself to a 401(K) plan, you will enter it as follows:
- Search for 1099-R and select the Jump to link in the search results
- Continue through the screens to import or enter your 1099-R form
- 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 select Continue
- 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 select Continue
If taxes were withheld in box 4 of your form, they'll either be added to your refund or applied to your tax liability.
Just make sure that when you are reporting this information into TurboTax that for the question "What Did You Do With The Money From (your retirement fund)?", answer "I moved the money to another retirement account (or returned it to the same retirement account)"
Click here for additional information on entering rollover in TurboTax.
To preview 1040 in TurboTax Online to check these entries:
- Sign into https://myturbotax.intuit.com/
- Under Tax Timeline, click on Continue your return
- Go to "My Account" > "Tools"
- Under the Tools Center, select "view tax summary"
- Select "Preview my 1040"
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