I did a rollover in 2019 to an IRA at a brokerage. I got a bunch of tax forms, I input them in TurboTax last year and went on with life because it was chaos at the time. It seemed like my taxes were screwed up, but I had been unemployed and everything was a bit off. I think something was wrong with the tax forms I got because it shows as being a retirement plan early withdrawal when I loaded Turbo Tax this year. Is something wrong? Can I still fix it? I never touched the money, right from 401k to IRA.
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Please check your 2019 Form 1040 it should say rollover on line 4c and there should not be any amount taxable if you rolled it over into a traditional IRA. Please, check also line 6 on 2019 Schedule 2 if it shows a tax.
Please be aware if you did not have a direct rollover and had taxes withheld but did not replace the taxes when you put the money into the traditional IR then that amount will be taxable income and subject to the 10% early withdrawal penalty.
If you need to correct your 2019 tax return then please see How do I amend a 2019 return in TurboTax?. When going through the 1099-R section answer all follow-up questions carefully to indicate it was a rollover.
The line 4 shows the amount of the withdrawal and off to the side says rollover. Line 6 lists a small amount of tax $6, on some residuals mailed separate.
my concern is that it says income.
If you received the residuals, then if would be income. It must have been about $60 is there is $6 on line 6 of the Sch 2. It sounds like you might have received 2 1099Rs in 2019, one was for the rollover and the other was for the residual income generated in the 401K the month you rolled the account into the IRA. You should see $60 on 4D. If in 2020 you did not take any withdrawals, you can delete the 1099Rs that are showing up in the retirement income section.
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