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14bqst79
New Member

My husband rolled over $177,000 from his 401K upon retirement to a traditional IRA. No taxes held, of course. Why does this appear as income on my tax return?

 
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DanielV01
Expert Alumni

My husband rolled over $177,000 from his 401K upon retirement to a traditional IRA. No taxes held, of course. Why does this appear as income on my tax return?

It depends.  First, you want to make sure you have the right entries.  When you entered in the 1099-R, you should have entered a G in the box 7 distribution code.  Then, TurboTax asks what you did with the distribution.  You state that you rolled it over.  It is not taxable.  But it is still reported on the tax return.  It will show that you received the amount (considering it income), but that it is not taxable. on line 12a of Form 1040A , or box 16a of Form 1040, the distribution is reported.  But on line 12b of Form 1040A or box 16b of Form 1040, there should be a zero.  This would represent that you pay no tax on the rollover.

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DanielV01
Expert Alumni

My husband rolled over $177,000 from his 401K upon retirement to a traditional IRA. No taxes held, of course. Why does this appear as income on my tax return?

It depends.  First, you want to make sure you have the right entries.  When you entered in the 1099-R, you should have entered a G in the box 7 distribution code.  Then, TurboTax asks what you did with the distribution.  You state that you rolled it over.  It is not taxable.  But it is still reported on the tax return.  It will show that you received the amount (considering it income), but that it is not taxable. on line 12a of Form 1040A , or box 16a of Form 1040, the distribution is reported.  But on line 12b of Form 1040A or box 16b of Form 1040, there should be a zero.  This would represent that you pay no tax on the rollover.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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