Multiple 1099-R forms for same withdrawal do I enter both?

[stylelady5]

My husband first transferred his 401(k) into an IRA and then pulled the money out of the IRA because of a financial hardship.  We received a 1099-R for the initial transfer to the IRA which states it wasn't taxable and another for the actual withdrawal of the money which was taxable. Do I need to enter both of these 1099-R form or just the one for which we were taxed?  I have them both entered now and it is showing our retirement income as double what it truly was.

[jerry2000 · Accepted solution]

You must enter all 1099-Rs that you get. All distributions must be reported, whether they are taxable or not. Turbotax chose to show that total in the Your Income Summary page. That does not mean that the rollover is being taxed or affects your return in any way. The 401k will show on your Form 1040 Line 16A with the word ROLLOVER next to it - and that is all that happens, the rollover is not taxed and does not affect your gross income. The IRA withdrawal will show on your Form 1040 Line 15B, and that is the taxable amount that gets added to your income.

[Ashajas]

Was the provided answer correct?  I have the same question and so now it looks like double the income and my refund was cut in half.  Thank you

[MaryK4]

Yes, the answer is correct except the 401K is now reported on Line 4c.

@Ashajas

[Kelly-Boo]

Hi There - I have similar issue and wanted to make sure I'm entering it into TurboTax correctly.  I withdrew aftertax money from my 401K that had aftertax money (contributions) and taxable income (earnings).  The taxable amount (earnings) was put into rollover account which was then rolled over again back to my 401K plan.  I received two 1099R - the first 1099R showed a larger amount distribution (contributions and earnings) and the 2nd 1099R from the "rollover account" just showed the earnings rollover.  For ease of description - let's say the taxable amount (earnings) was $10,000.  Now I have two 1099R each incorporating the same $10,000.  When I enter both into Turbo Tax - it shows I had $20,000 of distribution total when it really was just the $10,000 rolled over twice.  Is this the right way to enter it?

2nd related question: Some aftertax money was rolled into a Roth IRA, some was rolled into a Roth 401K while the earnings was eventually rolled back into my 401K account.  When TurboTax asks me "Is the 1099-R reporting a rollover of funds from a 401K plan to a designated Roth 401K plan, do I answer "YES" even though my distribution went to three different types of accounts: Roth IRA, Roth 401K and earnings went back to 401K.  Thank you in advance - Hope this makes sense.  

[ThomasM125]

You do need to enter both 1099-R forms, and it is correct that your form 1040 will show both distributions.

Since the rollover funds were put into different retirement vehicles, I suggest you break up the form 1099-R entry into three separate entries, the total of which will equal the distribution amount reported on the 1099-R form. That way, you can treat each one separately and answer the questions as it applies to where each distribution ended up.

[Nettie0830]

I recieved two 1099 from same plan do I file both or just the initial one

[JohnW152]

@Nettie0830

Please clarify:  Are these 1099s exactly the same?  That is, are the same amounts and codes in the same boxes on each form?  Was there a rollover or any other unique activity to the account during the year?