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Government pension withdrawn and rolled over to Roth IRA - TurboTax treats as income

I left the federal government before the pension vested. The Federal (FERS pension scheme) contribution is after taxes. Last year (2024), I withdrew the amount (roughly 7K) and deposited it to my ROTH IRA. But, Turbo Tax reports this money as Income. Can someone help me understand why TT is treating this as income? Or in other words, double taxation?

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2 Replies
AmyC
Employee Tax Expert

Government pension withdrawn and rolled over to Roth IRA - TurboTax treats as income

After you enter the 1099-R, you have to go through all the screens answering questions. Select that you rolled it over to another retirement account to exclude the taxes.

 

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Government pension withdrawn and rolled over to Roth IRA - TurboTax treats as income

Thanks AmyC for your reply. You confirmed my finding since I posted this message. 

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