Rollover 401K to IRA

[juliaknowles09]

What do I need to fill out?

[jmcneil01]

turbotax is adding my direct rollover transfer to my total income, and it never asked me where I transferred the direct rollover to.   I am using TurboTax Deluxe.

[DS30 · Accepted solution]

It depends.

If this is a trustee-to-trustee transfer involving no payment or distribution to the participant, which includes a trustee-to-trustee transfer from one IRA to another IRA or from one 403(b) plan to another 403(b) plan, is generally not reported on Form 1099-R.

Therefore you will have no reporting requirement related to this type of transfer.

However if this is not a trustee-to-trustee transfer, the IRS requires that all retirement distributions (including a rollover distribution) be reported to the IRS.

You should have received a 1099-R for this rollover distribution and you will need to report this on your tax return. You will need to contact your 401(k) administrator if you have not received your 1099-R.

Because you received a 1099-R, the IRS will also have received a copy of this 1099-R. You will need to report this 1099-R distribution on your tax return but none of it will be taxable. Just make sure that when you are reporting this information into TurboTax that for the question "What Did You Do With The Money From (your retirement fund)?", answer "I moved the money to another retirement account (or returned it to the same retirement account)" (see screenshot)

To enter your 1099- R in TurboTax Online or Desktop, please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages and Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on "jump to full list" or “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Retirement Plans and Social Security”
5. Choose "show more", then IRA, 401(k),Pension Plans (1099-R) and follow the onscreen instructions

Please note that all distributions will be reported on your tax return (whether or not they are taxable) on Form 1040 on line 15(a) (or 16(a) but only the taxable portion will show on your return as taxable on line 15(b) (or 16(b)).

To preview 1040 in TurboTax Online:

• Sign into https://myturbotax.intuit.com/
• Under Tax Timeline, click on Continue your return
• Go to "My Account" > "Tools"
• Under the Tools Center, select "view tax summary"
• Select "Preview my 1040"

[clevelandrox]

The TurboTax software did not show me the screen shown in the screenshot.  I am worried that this is being treated as income other than retirement rollover and is affecting other calculations by TurboTax.

[DS30]

If your distribution is from a Traditional IRA, you should have gotten a this screen in the answer. Try to delete your 1099-R entry and re-enter.

[alexanderjim]

The TurboTax software did not show me the screen shown in the screenshot.

[osnowy1]

my rollover was from a 401K into a trad IRA.  I get no screen asking what I did with it

[edemmenegger]

I'm having the same issue with my 401k to trad IRA rollover. Turbotax isn't giving me the screens indicated above. I wonder if the 1099-R was completed incorrectly by my previous employer, thus not triggering the question. Anyone figure out an answer to this?

[ourt]

There is no box to write the reasons for my 401k rollover to an IRA. The box only  accepts numbers. Frustrating!

[dmertz]

For a code G Form 1099-R from a 401(k), TurboTax only needs to know that it was not rolled over to any type of Roth account (assuming it was not rolled over to a Roth account).  Answer No to both questions asking about rollovers to Roth accounts.

[Nirudo]

In 2017,  I did a 401K rollover to IRA.  It was trustee to trustee.  I reported this on line 4a of 2018 Form 1040.  This showed up in Adjusted Gross Income on line 7.  The Medicare insurance rates are based on AGI. The problem I have in treating this as AGI, it kicks me and my wife up a bracket for Medicare insurance Premium Part B and D.  I don't know how one can fix this?  I see this as money went from one pocket to another, and not as income.  Any thoughts?  

[Critter]

But did it show up on line 4b as well? That is the line that affects  Medicare. 

[dmertz]

Nirudo, the rollover of a distribution from a 401(k) made in 2017 has generally nothing to do with your AGI on your 2018 tax return.  The 2017 Form 1099-R reporting the distribution was reportable on your 2017 tax return, not on your 2018 tax return.

[Critter]

Good catch if the roll was done in 2017 and not 2018.   If that was a typo and you meant to say 2018 roll then did you enter it in correctly ?   Was the amount also on line 4b?

[Nirudo]

Rollover was done in 2018 and reported on 2018 Form 1040.  I was issued relevant 1099-R, and followed TurboTax instructions precisely.  I think the issue is with IRS.  Treating roll over as part of AGI is causing Medicare premium to bump up.  I have appealed the increase to Social Security.  I ran the numbers again thru TurboTax, but the numerical outcome is same.  Thanks.