Non-taxable Rollover Added to Total Income?

[DShoffner]

Rolled a 401K over to a variable annuity last year. 1099-R correctly shows as code G and non-taxable but TT is including the amount in the Total Income summary. That doesn't seem correct given this was past years income moved from one retirement account type to another.

Conversely, the Vanguard IRS rollover to same annuity wasn't even issued a 1099-R because it was treated by VG as a simple asset transfer.

Why would the total income be artificially and incorrectly inflated by TT for the rollover from the 401K on a 1099-R?

[dmertz]

Yes, it's reportable income, just not taxable income that affects anything else on your tax return.  Since its reportable income, TurboTax includes the gross amount in its summary of Total Income.  The gross amount must be included on Form 1040 line 4c but will be excluded from line 4d and the word ROLLOVER must appear next to line 4d.  TurboTax does this automatically.