My company split/merged to a new company and my 401k rolled to a new 401k. I then rolled the 401k to a IRA. Turbo shows a double income. Is this creating a tax problem?

[grmack59]

The income screen shows both roll overs as income, greatly inflating what I actually made, as neither of these were taxable events, all just roll overs (401k to 401k to traditional IRA). None of it was actual income.

[MinhT · Accepted solution]

In the income summary screen of TurboTax, the 2 rollovers will show as Gross Income, but NOT as Taxable income as the rollovers are not taxable.

[grmack59]

Will these show as income on the actual tax filings? And why show the amount as double (or triple or more)? Same dollar amount rolled 3 or 4 times makes it look like I'm a millionaire when it's really just one amount counted 3 or 4 times!

[MinhT]

The gross income from the rollovers will show on your form  on line 4a, but line 4b which is taxable part will be zero. This is quite usual and is not a flag at all for the IRS.

[grmack59]

I understand showing one roll over, but 2 or more seems very strange, as it's the same money being counted multiple times...but I guess tax law is strange! Thank you...

[VolvoGirl]

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 and make sure it’s right.   For 1099R check 1040 line 4b for any taxable amount.  If it was a rollover it should say ROLLOVER by it.

[grmack59]

Will do, and thanks...