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No, you DO need to report the amount of the rollover from the 401(k). For direct rollovers, the 1099-R will have a code that tells TurboTax automatically how to treat the "income" and it will not be included in your taxable income.
If the rollover was not direct, you will need to follow the prompts in the interview to be sure that TurboTax knows the funds were rolled over.
Thanks for your answer. The amount rolled over into a regular IRA (after retirement) is $261K plus. Even though, TurboTax allows you to enter the info, as presented and marked in the 1099R (including 2a Taxable amount $0.00), the gross income for the year (2019), includes the $261K, even selecting the option G Roll over to an IRA. This is throwing me off because TurboTax does not make the adjustment, to reflect the $0.00 taxable amount of the roll over IRA.
If the entire gross amount of the distribution from the 401(k) was rolled over to the traditional IRA, the distribution and rollover will not affect your tax liability. If any amount of the distribution was withheld for taxes and you did not substitute other funds to complete the rollover of the entire distribution, the portion not rolled over is generally taxable and potentially subject to an early distribution penalty.
Since the Form 1099-R has code G in box 7, has a zero in box 2a and you in the follow-up question that the money was not rolled over to any kind of Roth account, TurboTax will not be treating it as taxable and entering this properly will not cause TurboTax to change your taxable income. Check to see that the $261K is included on Form 1040 line 4c but not on line 4d.
I closed an IRA with a company and rolled it over in total to another IRA at a different company within the required time limit. I entered 1099-R info into TurboTax from original IRA showing total distribution and taxes withheld for total amount.
I can't find anywhere to enter 5498 form in TurboTax to show set up of new IRA in new company showing overpayment of taxes for total amount which I was told would be refunded to me if rolled over within 60 days.
The rollover is indicated during the entry of the Form 1099-R. You do not enter Forms 5498.
There is no provision to mark the RMD amount as a Rollover. TurboTax assumes that it is income and increases taxes appropriately.
"ROLLOVER in 4b? Where's that?
@garydg101 wrote:
There is no provision to mark the RMD amount as a Rollover. TurboTax assumes that it is income and increases taxes appropriately.
"ROLLOVER in 4b? Where's that?
For a 2020 RMD rollover: Delete the 1099-R you entered and re-enter.
Answer the RMD question that "None of this distribution was a RMD" or "RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.
If this is an inherited IRA then answer the "Is this IRA inherited" with NO. The purpose of that question is to PREVENT rolling an inherited IRA over, but is allowed for 2020 only.
Then you will get the screen to say it was "moved" and all rolled over.
Also check the box that this was NOT a COVID related distributions - it was a RMD that was returned.
That will put the 1099-R box 1 amount on the 1040 form line 4a with the word ROLLOVER next to it.
Line 4b is on the 1040 tax return form.
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