I received a 401k as part of a divorce settlement in 2017. At the end of Dec of 2018, I requested a rollover of the entire balance of $33,753 over into an IRA. The check was deposited into my new IRA account during the first week of Jan 2019.
I am now doing my 2018 taxes using TurboTax and have received a notification that I have incurred a penalty. The message states that I made an excess contribution of $28,254 and that I will owe 6% per year that the excess money remains in the IRA. It states that I am only allowed to contribute $5500 tax free each year.
I believe that there is a mistake here, because that money was contributed over the past 15 years into the 401k account, according to tax guidelines. This is simply movement of money from one account to another so that I may have more direct access to balances, customer service, etc .
that G means 'direct rollover' so something doesn't make sense
are you sure you keyed in the "G" into TT? suggest deleting the form and confirming the error goes away
if the penalty is still there, your problem is elsewhere. did you key in another 1099-R by accident?
if the penalty goes away, then key in the 1099-R again and see what occurs.