State 457 account transferred directly to IRA

[ALFAGold]

I had 2 accounts with a state retirement system; 457 and 401k.  In Feb 2022 I transferred them both directly to separate IRA's with a private broker.  The state retirement system withdrew the RMD (age 72.5 this year) prior to the rollover, and withheld the 12% Fed Tax on the RMD. 

I received 4 1099-R documents; 1 each for the 457 and 401k RMD and withhold of tax, then 1 each for the Gross Distribution of the 457 and 401k that were transferred directly to the private broker.   For each of the Gross Distribution 1099-R for 457 and 401k the "Taxable Amount" shows $00.00 and the Distribution Code is G.  

I understand reporting the RMD distributions, and the Fed Tax withheld on my 1040. 

Do I also report the 2 1099-R with the rollover amount that went straight to the private broker?? That significantly raises my income numbers for money that went back into Rollover IRA and was not distributed.

[ThomasM125]

Yes, you do have to report all the form 1099-R's you received, as the IRS gets a copy of them so they will be looking for them on your tax return. The rollovers should have a code "G" or "H" in box 7 that would mean they should not appear as taxable on your return. Also, TurboTax will ask you if they were rolled over after you complete the form 1099-R entry screen.

They may show on your form 1040 as income, in line 4(a) on form 1040, but the taxable amount on line 4(b) should not include the amount rolled over. 

You can view your form 1040 and schedules 1 to 3 while working in the online version of TurboTax by following these steps:

1. Click on Tax Tools in the left menu bar
2. Click on Tools
3. Look under Other Helpful links….
4. Choose View Tax Summary
5. Look in the left menu bar and choose Preview my 1040
6. Scroll down the page to see form 1040 and schedules 1 to 3

[ALFAGold]

Thank you, I am using the desktop version of TT so I will re-examine the 1099-R boxes to ensure I have entered it correctly.  Then use forms to verify the numbers as you have indicated.