A rollover should not be taxable but Turbo tax is counting it & my RMD. I had 2 from the same company one taxable & the big one a rollover non-taxable. It is being counted as income. Why?
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Please ensure you entered the rollover correctly in TurboTax. Please follow these instructions to enter your Form 1099-R :
Please be aware if the rollover was to a Roth IRA from a traditional IRA or 401k then this would be a conversion and the amount converted would be taxable income.
[Edit 3/3/2019 7:04]
Please ensure you entered the rollover correctly in TurboTax. Please follow these instructions to enter your Form 1099-R :
Please be aware if the rollover was to a Roth IRA from a traditional IRA or 401k then this would be a conversion and the amount converted would be taxable income.
[Edit 3/3/2019 7:04]
This sounds like my situation however, it is not getting to that question for me. Perhaps I needed to not move forward into entering ANY 1099R before the rollover one. I am thinking I am paying for this bad. I did a rollover, the fact is Ive been unemployed all year! and it shows at least 100K more than last year because this looks like income.
I am certain that a rollover should remove it from your income?
Maybe I shouldn't be, but Im shocked.
Have the files been updated and changed since then?
Thank you,
R
Ok... the total distribution will show on the summary screens but on the tax return the taxable portion will be taxed ... so if you completed the 1099-R section correctly then switch to the FORMS mode and review the actual return line 4.
The order of entry of Forms 1099-R makes no difference. The treatment by TurboTax of a rollover is entirely isolated to the particular Form 1099-R being entered.
TurboTax only needs to ask what you did with the money if the code in box 7 of the Form 1099-R does not automatically indicate a direct rollover. The codes that indicate direct rollovers are codes G and H.
Certain distributions are not eligible for rollover and TurboTax knows not to ask about rollovers for these. These would be a distribution made from an inherited IRA to a non-spouse benefiary (Code 4 in box 7 without code G or H), any distribution that has a code other than code 1, 2, 7, M, J, T or Q in box 7, a distribution that you indicate was all RMD and any distribution that you explicitly indicate to TurboTax was from a nonqualified retirement plan.
What did you roll it over from and to? Was it a direct plan to plan transfer or did you get a check and deposit it? If they took out any withholding you needed to include it from your own money when you put it into the new account or the withholding becomes a distribution itself.
It matters what you rolled from, and what you rolled to. If you rolled from a traditional IRA/401(k), to a ROTH IRA/401(k) then the entire amount is taxable income to you and it *does* get included in your AGI. So while it's taxed, it's not penalized if you are not of retirement age yet.
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