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Level 2
posted Feb 24, 2025 11:12:06 AM

Direct IRA non-taxable rollovers showing as Pension Distributions?

I understand both IRA and Pension rollovers can show as non taxable on the actual tax form, BUT because they are showing as Pension, instead of IRA distributions, they ARE counting against total income for healthcare marketplace tax credits.  

Why do IRA rollovers show as Pension distributions (5a) instead of IRA distributions (4a)?    This does not make sense.   Thanks!

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1 Replies
Level 15
Feb 24, 2025 1:55:40 PM

If the rollover is from a traditional IRA, the Form 1099-R from that IRA must have the IRA/SEP/SIMPLE box marked to indicate that the distribution is reportable on Form 1040 lines 4a/4b.  If this box is not marked on the Form 1099-R provided by the payer, it indicates that the distribution is not from a traditional IRA.

 

Pension distributions include distributions from a 401(k), 403(b), 457(b) and the federal TSP.  These are not IRAs.

 

Make sure that the IRA/SEP/SIMPLE box on TurboTax's 1099-R form is marked or unmarked in agreement with the Form 1099-R provided by the payer.