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Level 1
posted Jan 14, 2023 5:22:35 PM

On a 401K rollover to an IRA, there was a Capital loss. Does this get entered in TurboTax?

Following retirement, I rolled over a 401K into an IRA.  At the time of the rollover, Fidelity reported a Capital Loss, since the total contributions was more than the amount transferred to the IRA.  I don't see anything on the 1099-R related to the Capital Loss.  How do I report the Loss in Turbotax? The total loss is over $10K. 

0 3 706
3 Replies
Level 15
Jan 14, 2023 5:51:18 PM

 The drop in value is not reportable and is not deductible.  It just means that you presently have $10k less deferred income that will be taxable in the future.

Level 1
Jan 14, 2023 6:13:22 PM

Ok.  I will have to check with my Financial Advisor on how this will affect future events / withdrawals from the IRA.  I would like to think that this unrealized loss gets tracked/transferred from the 401K into the IRA. The turndown in the market this year hit hard. 

Level 15
Jan 14, 2023 6:16:22 PM

No it shouldn't be tracked or transferred.  You just will have less  balance to take out, so less tax.  Unless the market goes back up.  The amount rolled over to the IRA was less.