BY REPORTING MY ROLLOVER FROM A 401K TO AN IRA THEN A DISTRIBUTION FROM THAT IRA, TURBOTAX IS ADDING BOTH TOGETEHER AN OVERSTATING MY INCOME

I entered the information re the rollover of my 401K into a traditional IRA which is reported on line 4a. I then entered a distribution from that IRA which shows up on line 4b. When TurboTax calculates my total earnings for the year it is adding both together and overstating my income for the year? Why?...Should I not report the rollover just the distribution?

893

Expert Alumni

Jun 6, 2019 2:03:15 AM

You should report both the roll-over and the distribution as you have received 2 forms 1099-R. The roll-over is not taxable. It is reported as gross distribution on line 4a of form 1040, but is excluded from the taxable amount shown on line 4b.

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BY REPORTING MY ROLLOVER FROM A 401K TO AN IRA THEN A DISTRIBUTION FROM THAT IRA, TURBOTAX IS ADDING BOTH TOGETEHER AN OVERSTATING MY INCOME