No, the distribution rollover will not be part of your adjusted gross income (AGI). The IRA rollover is not taxable and the code G, in Box 7 is the indicator of a trustee to trustee transfer as you explained. When I test your scenario and I check the 1040, (Line 5 for 401(k) distributions) none of the amount from the 1099-R with code G is taxable.
- You can enter the full amount as the taxable amount and the code G will still be the deciding factor for taxability. It should not be taxable on your tax return.
Using the Tax Tools to 'Preview My 1040':
- To find Tools:
- Sign into your TurboTax account and open or continue your return.
- Select Tax Tools in the left menu.
- You'll find Tools beneath Tax Tools.
- Select View Tax Summary
- Select Preview My 1040 (left black panel)
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