1099r for 401k rollover distribution

[kcroth]

I changed companies in 2016 and did a distribution rollover with my 401K. I I changed companies in 2016 and did a distribution rollover to the new company's 401k program. My question is: Do I need to file the 1099R for the rollover with my 2016 tax return ? if so will it be reflected as income?

[ThomasM · Accepted solution]

Yes, you do need to report the 1099-R on your 2016 tax return.

When you enter the 1099-R into TurboTax, notice the code in Box 7.  The codes for a direct rollover are "G" or "H" (if a Roth).  TurboTax will pick up on this code and your distribution won't be taxable.

If this was an indirect rollover -- meaning you physically got the check and deposited the funds into another retirement account -- then you'll have a code other than "G" or "H".  In that case, you'll answer TurboTax's question about what you did with the money by checking the box that says you moved the money to another retirement account.  That will also result in it not being included in taxable income.

[markwira]

I entered the "H" code from the 1099-R i received and do not get the question "what did I do with the money? It shows up as taxable income on my 1040 form.

[ThomasM]

On your 1099-R, is the box for "IRA/SEP/SIMPLE" (between boxes 7 & 😎 checked?

[ThomasM]

Also, is there anything in box 2a, and is box 2b checked?

[markwira]

I deleted the 1099-R entry and re-entered the info, reading very carefully and entering exactly what was asked. TT then responded correctly and did not tax my Roth rollover Thank you.

[ThomasM]

Great!

[mskl1965]

I am reporting a direct rollover from a 1099 R and entered the "G" code. I did not get the question "What did I do with the money" and it is showing up as taxable income.  What can I do to fix this?

[mskl1965]

correction to above, it is not showing as taxable income, but income.  This is putting me above ROTH contribution levels.  HELP!!

[ThomasM]

There are only two possibilities why the amount would be taxable:  (1) it's a rollover to a Roth IRA, and (2) you rolled it into an HSA using the once-in-a-lifetime contribution feature, and then all of it wound up being an excess contribution.  Each of these possibilities has its own question of you in TurboTax after you've entered the 1099-R.  First, you'll be asked "Was this money rolled over to a Roth IRA" and you'll have to check "no."  Then you'll get the HSA question which must also be checked "no" (if applicable).  Double check these and let me know.

[ThomasM]

Okay, just to be clear, then, it's a rollover to a Roth IRA.  Correct?

[mskl1965]

It is rolling over to a traditional IRA

[ThomasM]

Go up into the upper margin and click on My Account, then select Tools from the dropdown menu.  Then click on View Tax Summary, which is the first item in the list of Other Helpful Links.  Then go up above the summary page and click on Preview My 1040.  That will load the 2-page tax return for review.  Look at lines 15a & 15b (or 16a & 16b) and tell me what you see.  Also, what type of account is it being rolled from?

[mskl1965]

It is being rolled from a pension.  16a gives the $ amount, 16b shows rollover.  I see that this income is not in my AGI!!  It is showing on the Turbo Tax Income Summary - this is what was throwing me off!!!

[ThomasM]

Okay, all is well.