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Level 3
posted Mar 18, 2021 11:11:01 PM

401k rollover to the same plan administrator, the partial amount becomes taxable?

last year I have changed my job and rolled over my previous 401k saving to the new 401K account. both are managed by the same Administrator/Empower. I got three forms with Distribution codes as E, BG, and G. I have been told by the plan administrator that there is no tax implication since I am simply rolling over the fund, but TurboTax says taxable for the certain $$ 1099 R with distribution code E? Please clarify.? Thank you!

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1 Replies
Level 15
Mar 19, 2021 6:30:18 AM

A code-E distribution is not eligible for rollover.  If the amount reported on the code-E Form 1099-R was deposited into another qualified retirement account as a rollover, it constitutes an excess contribution to that account that needs to be removed.