Retirement plan

Forum|Forum|7 years ago
June 1, 2019
3 replies
2 views

My pension plan at work was rolled over to my IRA at work. I think I'm being penalized for this rollover.

TurboTax Deluxe Online

Best answer by macuser_22

A 1099-R with a code G in box 7 is always a rollover to a Traditional IRA unless it was rolled (converted) to a 401(k) Roth or a Roth IRA. If neither of those then the only remaining possibility is a Traditional IRA so asking is not necessary.

A Traditional IRA rollover is not taxable, but a Roth conversion is.

It will show as income on the summary screen which shows gross income, not taxable income.

The income will be reported on line 15a or 16a on the 1040 form (depending on the type of account) with the word “ROLLOVER” next to it if it was a rollover.

The taxable amount will go on line 15b or 16b. In the case of a rollover, that amount will be zero.

lines 11a/b and 12a/b if 1040A form

Carl

Level 11

Depends on what the code is in box 7 of your 1099-R, and if you read the entire screen of each screen that follows the 1099-R entry screen so that you would answer the questions correctly. What's the code in box 7 of your 1099-R?

Carl

Level 11

If you read the information on the screens that follow (all the information) and made the correct selections, then you're fine. If you're being penalized for anything, then at the end of that section the program would specifically tell you that "You're paying a penalty" or some wording like that, and you wouldn't think you were being penalized - you "know" it.

macuser_22

Answer

Alumni - Champ

A Traditional IRA rollover is not taxable, but a Roth conversion is.

**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.**