Fidelity insisted on taking out an RMD before rolling my 401k over to an IRA. I added the 1099-R in TT and clicked "Yes, some or all of this withdrawal was an RMD" and "All of this distribution was an RMD". But TT has it as pension income not RMD.

Forum|Forum|4 years ago
February 23, 2022
5 replies
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TurboTax Home & Biz Windows

fanfare

Level 15

Fidelity insisted on you taking an RMD and that RMD is pension income.

if there is any more 401k money removed above that amount you could roll that part into an IRA.

Note: you had to do it within 60 days or have Fidelity do it for your immediately.

dmertz

Level 15

Yes, a distribution from a 401(k) gets included with pension income on Form 1040 lines 5a and 5b. It seems likely that the RMD distribution was reported on a separate code 7 Form 1099-R from the one reporting the rollover (code G for a direct rollover) and, if so, the entire code 7 amount was RMD (meaning it was not eligible for rollover).

bAherAuthor

Level 2

Thanks for your reply. Yes, there is a separate 1099-R for the RMD. It's pension income because it was taken from the 401k before rollover to IRA?

DanaB27

Employee Tax Expert

Yes, it is listed under pension distribution because it was a 401k rollover to a traditional IRA. The distribution will be listed on 5a but the rollover will not be taxable on line 5b.

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