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direct rollover from one eligible account to anothre

I did a direct rollover from an  eligible retirment account (403B 401A) to another eligible IRA retirement acount. WHY DOES TURBO TAX COUNT THIS AS INCOME AND TREATS IT AS I TOOK THE MONEY WHEN IT WAS ROLLED OVER INTO ANOTHER RETIREMENT ACCOUNT. I enter the 1099R and indicate that i contributed that amount into another 401B

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1 Reply
dmertz
Level 15

direct rollover from one eligible account to anothre

All distributions are defined in the tax code as income, but the rollovers make them nontaxable income.  "Income" simply means that it's reportable on your tax return, in this case on Form 1040 line 5a, but has no other effect on your tax return because they are nontaxable, excluded from line 5b with the ROLLOVER notation.

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