401K Roll Over to IRA

Forum|Forum|5 years ago
July 13, 2020
2 replies
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I had an old 401K Rolled over from Well Fargo Bank to TD Ameritrade IRA. This was a direct rollover where WF made the check out to the bank and it was delivered to them in less than a week. My 1099R for that transaction shows Taxable Amount in box 2a. When I completed my taxes turbotax added the distribution to my income and I am being taxed on that amount. Is this rollover taxable? Was there a mistake made on my tax return.

VolvoGirl

Level 15

That means the taxable amount when you actually take a distribution. What code is in box 7? Is it a G?

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 or 4d for any taxable amount. If it was a rollover it should say ROLLOVER by it and 0 taxable.

elattimoAuthor

Level 2

Yes, Box 7 is G.

ROLLOVER is next to 4b and 0 is on the 4b line.

However the full taxable amount is in 4d. And added to the Adjusted Gross Income.

macuser_22

Alumni - Champ

What code is in box 7?

Is the IRA/SEP/SIMPLE box checked?

Is box 2b (not determined) checked?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

elattimoAuthor

Level 2

2b Total Distribution is checked.

macuser_22

Alumni - Champ

IRA/SEPSimple is not checked.

I did not convert to a Roth.

Again what did the plan trustee put in box 2a?

If box 2a is zero then noting should be taxed. If box 2a has an amount of is the same as box 1 then the plan administrator expected it to be converted to a Roth and it will all be taxable.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**