Hi There,
In October, 2019, I rolled over $5,900 from my 401K to Roth IRA and traditional IRA account.
Out of the $5,900 gross distribution, $5,092.86 were after tax contribution and they were rolled over to my Roth IRA, and $807.14 were dividends (taxable) and they were rolled over to my IRA account.
I received my 1099-R tax form from Fidelity, and the form lists :
Box 1: Gross distribution: $5,900
Box 2a: Taxable amount: $0.00
Box 2b: Taxable amount not determined (not checked)
Total Distribution (not checked)
Box 3: Capital Gain: $0.00
Box 4: Federal Income Tax withheld: $0.00
Box 5: Employee Contrib/Desig Roth Contrib or Insurance Premiums: $5,092.86
Box 6: $0.00
Box 7: G and IRA/SEP/Simple (not checked)
The rest of the boxes: 8,9, and 10 either empty or $0.00
I uploaded 1099-R PDF into Turbo Tax Deluxe, using the upload feature, and went through the series of the questions that Turbo-Tax asks. After I was done, I saw that my refund was decreased because of $807.14 that Rolled over to Traditional IRA account.
Just to make sure that the refund decrease was related to the 1099-R for, I deleted it from Urbo-Tax, and my refund amount went up to the previous amount I had before uploading 1099-R form.
My question:
If I rolled over the taxable amount $807.14 to IRA account, why am I being taxed on the amount?
I talked to a fedelity 40K specialist and he said that I should not be taxed on any of the 401K $2900 gross distribution that I rolled over to Roth IRA and IRA.
I am not sure what I missing here and why Turbox Tax is considering $807.14 as taxable even though they were rolled over to IRA.
I aprreciate your response on this.
Regards.
