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New Member

I have 2 1099-R same company 1 = rollover not taxable 1 taxable; after entering rollover I ended up owing over $4,000 why? For 2018

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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Returning Member

I have 2 1099-R same company 1 = rollover not taxable 1 taxable; after entering rollover I ended up owing over $4,000 why? For 2018

Please ensure you entered the rollover correctly in TurboTax. Please follow these instructions to enter your Form 1099-R :

  1. Click "Personal Income" on the top
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue" and enter the information from your 1099-R
  8. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account
  9. Then choose “I rolled over all of this money to an IRA or other retirement account.”

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]

View solution in original post

7 Replies
Highlighted
Returning Member

I have 2 1099-R same company 1 = rollover not taxable 1 taxable; after entering rollover I ended up owing over $4,000 why? For 2018

Please ensure you entered the rollover correctly in TurboTax. Please follow these instructions to enter your Form 1099-R :

  1. Click "Personal Income" on the top
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue" and enter the information from your 1099-R
  8. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account
  9. Then choose “I rolled over all of this money to an IRA or other retirement account.”

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]

View solution in original post

Highlighted
Returning Member

I have 2 1099-R same company 1 = rollover not taxable 1 taxable; after entering rollover I ended up owing over $4,000 why? For 2018

You indicated that this was not helpful, can you give me more details to solve your problem?
You did enter both 1099-R separately, correct?
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New Member

I have 2 1099-R same company 1 = rollover not taxable 1 taxable; after entering rollover I ended up owing over $4,000 why? For 2018

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

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Level 15

I have 2 1099-R same company 1 = rollover not taxable 1 taxable; after entering rollover I ended up owing over $4,000 why? For 2018

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. 

Highlighted
Level 15

I have 2 1099-R same company 1 = rollover not taxable 1 taxable; after entering rollover I ended up owing over $4,000 why? For 2018

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.

Highlighted
Level 15

I have 2 1099-R same company 1 = rollover not taxable 1 taxable; after entering rollover I ended up owing over $4,000 why? For 2018

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.

Highlighted
Level 15

I have 2 1099-R same company 1 = rollover not taxable 1 taxable; after entering rollover I ended up owing over $4,000 why? For 2018

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.