Pension rollover into new pension

[ray276]

I am age 49. Received a $50K payout from a county pension, and immediately deposited into city pension. (Change of jobs. All Govt.)  Taxed as income? If not, how can I tell how TurboTx is treating the payout?

[Fern · Accepted solution]

The rollover is a reportable event, but it is not a taxable event. You should have received a 1099 R from the payout of the county pension.

The 1099 R will be entered in the Retirement Plans and Social Security section.

• Select Federal Taxes
• Select Wages and Income
• Select Show More at Retirement Plans and Social Security
• Select IRA, 401(k), Pension Plan Withdrawals (1099-R)

A retirement account that is rolled over to another retirement account is reported as income on your 1040.  However, it is not reported as taxable income.  The Turbo Tax Income summary lists it because it is carried to your tax return.

To see how this is treated on your form 1040:

Select My Account at top of screen
Select Tools
Select View my Tax Summary
Select Preview my 1040.

Scroll down to Line 16.  The distribution should be reported in box 16a but not in box 16b. Because it is not in 16b, no taxes will be calculated on it.