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Level 2
posted Mar 5, 2023 8:14:56 AM

Is "rollover IRA" considered a "traditional IRA"? and is a rollover from a pension plan (pretax) to "rollover IRA" taxable?

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2 Replies
Expert Alumni
Mar 5, 2023 8:30:05 AM

No, a rollover from a pre-tax retirement plan to a traditional IRA is not taxable. 

 

A rollover can also be from an after-tax retirement account to Roth IRA (also not taxable).

 

A conversion from a pre-tax retirement account to Roth IRA would be taxable.

 

If the code in box 7 doesn't indicate that this was a direct rollover then you can indicate in the follow-up questions that it was a rollover:

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “1099-R”
  3. Click on “Jump to 1099-R” and enter your 1099-R
  4. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
  5. Continue answering the questions.

Level 8
Mar 5, 2023 8:31:23 AM

Amounts from pension or even other IRAs can be rolled over into an IRA. If a 401k type of pension or a Traditional IRA are rolled into another Traditonal IRA, it is not taxable since they are funded with pre-tax dollars. If a pre-taxed fund is rolled over into an after-tax IRA (Roth), then it is taxable. The conversion amount will be included in your taxable income.