Rollover 401K to IRA

[Critter]

I highly suggest you seek local professional guidance to review the return you filed ... if it was reported properly on line 4b then you should not have this medicare issue.  

[dmertz]

Nirudo:

1. Does your 2018 Form 1040 show a nonzero amount on line 4b?
2. Is the word ROLLOVER shown next to line 4b?
3. What is the year of the Form 1099-R reporting the distribution from the 401(k)?
4. Does box 2a of this Form 1099-R show $0?
5. What is the code in box 7 of this Form 1099-R?
6. Is the IRA/SEP/SIMPLE box marked on this form?

[Nirudo]

dmetz :  Thanks for your help.  Below is answers o your questions -Bold and Underlined.  I think I am making a mistake some where.  I am thinking of having paid service of TurboTax to review the returns.  Thanks again.

1. Does your 2018 Form 1040 show a nonzero amount on line 4b? NO
2. Is the word ROLLOVER shown next to line 4b? YES
3. What is the year of the Form 1099-R reporting the distribution from the 401(k)? 2018
4. Does box 2a of this Form 1099-R show $0? YES
5. What is the code in box 7 of this Form 1099-R? “G”
6. Is the IRA/SEP/SIMPLE box marked on this form? NO

[Nirudo]

Critter:

Thanks for your advice.  I am thinking of using paid service from TurboTax to review the return.  I am pretty sure, I am making an error somewhere along the line.  Thanks : Nirudo

[dmertz]

OK, so previous mention of 2017 was a typo.

I'm not aware of any way to cause TurboTax to include any of this distribution on line 4b of 2018 Form 1040 if the details of the Form 1099-R are entered accurately, so it seems that the nonzero amount on line 4b is coming from a Form 1099-R that you entered other than this code  G Form 1099-R that has $0 in box 2a, or you entered a nonzero amount into box 2a of TurboTax's 1099-R form for this code G From 1099-R.  Although it shouldn't make any difference, make sure that you didn't leave box 2a blank on TurboTax's form (make sure that the $0 was entered) and make sure that you entered code G in only one of the two box 7 boxes on TurboTax's form.  As far as I know, a code G in box 7 and $0 in box 2a invariably results in none of this Form 1099-R being included on Form 1040 line 4b.

Examine the Pension and Annuities section of TurboTax's Form 1099-R Summary.

[Nirudo]

dmertz:

Thanks for your help.  I did find my errors, and TurboTax did not include roll over amount from 401K to IRA in AGI.  Root of my problem was deferring my first RMD when I turned seventy and a half (2017) to next year (2018).  This required me to take two RMD's in 2018, and pushed  AGI in next Medicare bracket.  The lesson is deferring the first RMD, now one must take it at seventy two and a half, may not be a good idea for everyone.  So this was bitter /  sweet in the end.  Again thanks for taking the time and guiding me.   Have a healthy and happy New Year.

Best Regards,

Nirudo

[Nirudo]

@Critter 

I found my boo boo.  All is OK.  TurboTax was caorrect in calculating AGI.  Thanks for your help.

[fanfare]

Does the SECURE act still allow you to take your first RMD in the beginning of the year after you turn 72?

Evidently the 1/2 year complication is gone.

[dmertz]

If you reach age 70½ after 2019, the first RMD can be taken anytime between January 1 of the year you reach age 72 and April 1 of the following year.

[DaytonDeb]

Why isn't this question being answered???  It has been asked several times and Turbo Tax has not provided a solution.  Has your question been answered yet?