turbotax icon
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Returning Member

401k rollover to Simple IRA.

I did a direct rollover (PART 2 of 2) of my 401k to a Simple IRA within the 20 days (or whatever) window. Would the funds be taxed by either Federal or State?  I think the answer is "no" to Federal but I'm confused about State.  I live in NJ. Please advise.

1 Reply

401k rollover to Simple IRA.

I assume that you have received (or will receive) a 1099-R with a distribution code of "G". If so, then your rollover will not be taxed on the federal level, and I doubt it will be on the state level.


If the distribution code was "7", then you will have to answer the questions in the 1099-R interview in TurboTax to show that you rolled over the entire amount to a qualified retirement plan.


The Consolidated Appropriations Act, Section 306, which became law on December 18, 2015, expanded the list of account types from which SIMPLE IRA plans can accept rollovers. This included the ability to roll over 401(k) plans to Simple IRAs. See https://www.irs.gov/retirement-plans/expansion-of-rollover-options-includes-savings-incentive-match-....


Enter the 1099-R as printed, and TurboTax will handle the state return appropriately.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies