Retirement Income Results

[deebill99]

On this page in Turbo Tax it is showing my Traditional IRA account balance and my Pension account balance as two separate accounts when they are the same account.  it shows a total retirement income of $270,000 when it should be a total retirement income of half that amount.  I rolled my pension into the traditional IRA account when I retired then a short time later due to unfortunate circumstances I withdrew the Traditional IRA account related to COVID.    How do I get Turbo Tax to realize that these are the same accounts?

[JoannaB2]

Yes, you may have to delete and re-enter the forms to correct the error.  You have to enter both 1099-R, one with code 7 or 1 and the other 1099-R should have a code G for rollover. First, delete both forms:

• In Turbo Tax Home Screen, click Tax Tools, then Tools,
• Under Tools Center, scroll down and click delete a form.
• Under Review form list, scroll down and delete both 1099-R

To add 1099-R:

• Go back to Tools, and type in the search bar 1099-R.
• Click Add another 1099R, click continue.
• Click "Change how i enter my form" then continue
• In "How do you want to add your 1099-R?", click type it in myselt.
• Answer the interviews, then click continue.
• Enter the 1099-R provider's info, then continue.
• On the question, "Do any of the situation apply to you?", select "I took money due to the impact of Covid-19".
• Answer Yes "Did you rollover the gross amount to another retirement account?".

The CARES Act allows qualified individuals impacted by the coronavirus pandemic to pay back funds withdrawn from a qualified retirement plan over a three-year period, and without having the amount recognized as income for tax purposes.

[dmertz]

There appears to be nothing wrong with your tax return.  Both of these transactions must be present.  The distribution from the pension will be included on Form 1040 line 5a but excluded from the taxable amount on line 5b, and the word ROLLOVER will appear next to line 5b.  The distribution from the traditional IRA will appear on line 4b as taxable.  The result is that you have $270,000 of reportable transactions (ths sum of taxable and nontaxable income) but only $135,000 is taxable income.