I entered my 1099-R and the retirement income results total appears under 'Pension and annuity distributions' instead of 'traditional distributions' which it should be?

[erika-reinsel]

The rollover was from a traditional 401k account to a new traditional 401k amount. I entered exactly as the form received, but not sure why TurboTax shows the results and the total from the 1099-R under Pension and annuity distributions

[SharonD007]

If you are referring to Line 5a of your Form 1040 (as shown below, highlighted in yellow), that is where your retirement distribution from a 401k is reported. If you rolled it over into another retirement plan, you would see the word ROLLOVER as shown below. Pension and annuity payments entered on line 5a may include distributions from 401(k), 403(b), and 457(b) plans. If your distribution were from a Traditional or Roth IRA, you would see it on lines 4a and 4b.

Please see IRS 1040 Instructions for further details.

[leeloo]

A 401k is a pension plan. Don't let the word "traditional" confuse you. A Roth 401k is also still a pension plan. 

[erika-reinsel]

I was talking to Vanguard (who completed the rollover) and they said it's not a pension plan, so that's where the confusion came from.

[erika-reinsel]

Thanks for sending. I never previously had to do a rollover so just confirming this is accurate. I filled out as received on the 1099-R

[LindaS5247 · Accepted solution]

As long as you entered your Form 1099-R exactly as shown, and the Form 1099-R is coded properly, TurboTax should properly enter your information where it belongs.

You can preview your Form 1040 to check your entries as follows:

On your Form 1040 tax return, your rollover will be reported as the amount distributed on Line 5a, “Pensions and Annuities” and on Line 5b, “Taxable Amount” for a pension plan (401(K)) or lines 4(a) and 4(b) for an IRA.

You can view your entire return or just your 1040 form before you e-file:

1. Sign in to your TurboTax account
2. Open or continue your return
3. Select Tax Tools from the menu (if you don't see this, select the menu icon in the upper-left corner)
4. With the Tax Tools menu open, you can then:
   • Preview your entire return: Select Print Center and then Print, save or preview this year's return (you may be asked to register or pay first)
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu

Click here for instructions on how to preview your return in TurboTax.

[erika-reinsel]

I have entered exactly as on the 1099-R form, and as downloaded the preview, I do see it shows as rollover. However it does list under 'Pensions and Annuities' - I'm confused here because shouldn't it be an 'IRA distribution.'

I had talked to Vanguard first (who completed the rollover) and they said it isn't a pension or annuity. Should I be concerned or get more info from them. I would like to assume I'm fine since I entered per the form.

[DawnC]

In Box 7 on your form, is the IRA/SEP/SIMPLE box checked?   If the rollover was from a 401K, the box should not be checked and your distributions should be on the Pension and Annuities line.   For tax purposes, 401ks are treated as pensions (accounts created through an employer).   IRA accounts do not go through an employer.   The rules and contribution limits differ.  A traditional 401k is not the same as a traditional IRA.   You can ignore the word ''traditional'' when determining which line it gets reported on.   All is fine if your 401k rollover is on line 5a.  

Types of retirement plans

[erika-reinsel]

No, that box is not checked. Thanks for the clarification, really appreciate it. Sounds like the Vanguard rep didn't understand, as they were the ones saying it shouldn't be a pension.

[DawnC]

You are welcome!  They did not understand why you were asking, I think.  There are differences between a 401k and a pension (you fund a 401k, and the employer funds a pension), so Vanguard wasn't wrong.   But for tax purposes, a 401k is the same as a pension.   Neither are IRAs.