Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
kgoldencpa-yahoo
New Member

I rolled over all of my 401k in 2021 to my new employer's retirement plan. The software is taxing $5,000 of it, though. How do I remove that?

 
4 Replies
DoninGA
Level 15

I rolled over all of my 401k in 2021 to my new employer's retirement plan. The software is taxing $5,000 of it, though. How do I remove that?

After entering the Form1099-R there was a screen asking you what you did with the money.  You should have selected the option for moving it to another retirement account so it will be entered on your Form 1040 Line 5 as a Roll-over.

Go back to the Form 1099-R section and edit the 1099-R you entered and continue until you land on that screen.

kgoldencpa-yahoo
New Member

I rolled over all of my 401k in 2021 to my new employer's retirement plan. The software is taxing $5,000 of it, though. How do I remove that?

Thank you for the response.  I did indicate that it was a rollover (G) and that none of it was taxable.  I rolled over $103K+ and it's showing up as a rollover on page 1 of the 1040 but it's also listing $5,000 of it as taxable.  I did not enter $5,000 anywhere, so I'm guessing it's a software glitch.  It seems pretty late in the season for the software to be doing this as it likely impacts many others.  I can't file the return with an extra $5K in taxable income that shouldn't be there.  Hopefully, they fix this soon!

 

kgoldencpa-yahoo
New Member

I rolled over all of my 401k in 2021 to my new employer's retirement plan. The software is taxing $5,000 of it, though. How do I remove that?

I figured it out - the $5K is from a COVID-19 withdrawal I made in 2020 that's spread over three years.  I had forgotten about that.

DoninGA
Level 15

I rolled over all of my 401k in 2021 to my new employer's retirement plan. The software is taxing $5,000 of it, though. How do I remove that?


@kgoldencpa-yahoo wrote:

I figured it out - the $5K is from a COVID-19 withdrawal I made in 2020 that's spread over three years.  I had forgotten about that.


Great...Glad that problem is solved.

Dynamic AdsDynamic Ads
Privacy Settings
v