1099-R and Form 5498 - 401(k) Rollover

Forum|Forum|5 years ago
March 13, 2021
5 replies
42 views

My husband and I both rolled-over 401(k) accounts from previous employers into traditional IRA accounts with a new financial institution. We completed the rollovers within the allotted time window. We've got the 1099-Rs and also Form 5498s.

Where do we enter the 1099-R (specifically) in TurboTax? How do we answer the follow-up questions based on the situation described above? Currently, the question responses following the 1099-R entry in income don't seem to address this specific situation well.

Then, where do we enter the Form 5498 in TurboTax? How do we answer any questions associated with that form?

Without entering the Form 5498s, TurboTax makes it look like we took the 401(k) distributions as income when we did not.

ColeenD3

Level 15

Enter each person's separately and work all the way to the end before entering the other person's. Do not enter the Form 5498 at all. These are only for your own records. You will see in the interview section the screenshot below.

Inside TurboTax, search for 1099-R and select the Jump to link in the search results.
Answer Yes on the Did you get a 1099-R? screen.
- If you land on the Your 1099-R Entries screen instead, select Add Another 1099-R.
Select which option matches your form and Continue

AVW0007Author

Level 2

We entered the information from our 1099-Rs when prompted using the search feature you suggested, and completed the follow-up questions.

However, we never receive the prompts shown in the screenshot you provided. We are never specifically asked by Turbotax to confirm that we rolled over the money into an traditional IRA. We ARE asked if we rolled over into a Roth IRA several times (the answer to which is no). Why aren't we seeing these prompts?

The rollover amounts are showing up in our income now as non-taxable income. Does this mean that TurboTax is processing the information correctly (even without the specific rollover prompts)?

macuser_22

Alumni - Champ

@AVW0007 wrote:

We entered the information from our 1099-Rs when prompted using the search feature you suggested, and completed the follow-up questions.

However, we never receive the prompts shown in the screenshot you provided. We are never specifically asked by Turbotax to confirm that we rolled over the money into an traditional IRA. We ARE asked if we rolled over into a Roth IRA several times (the answer to which is no). Why aren't we seeing these prompts?

The rollover amounts are showing up in our income now as non-taxable income. Does this mean that TurboTax is processing the information correctly (even without the specific rollover prompts)?

If the 1099-R has a code G in box 7 and is NOT a Roth, it can ONLY be a Traditional IRA so there is no need for any other question. You are done.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**