Solved: TT is only asking me if pension buyout rolled over into a Roth but no option for a Trad IRA so it's including the amount in my income. Other answers don't seem to help.
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TT is only asking me if pension buyout rolled over into a Roth but no option for a Trad IRA so it's including the amount in my income. Other answers don't seem to help.

I got a pension buyout and entered it in the 1099-R page. It asks if it rolled over to a Roth but no option for Traditional IRA so it's including the amount in my income.  I've read the other answers but while they talk about the same thing they're not helping me understand how to fix it.

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Level 15

TT is only asking me if pension buyout rolled over into a Roth but no option for a Trad IRA so it's including the amount in my income. Other answers don't seem to help.

To treat it as a rollover to a traditional IRA, TurboTax only needs to know that it was not rolled over to any kind of Roth account.

Yes, the distribution is income, but rolling it over to a traditional IRA makes it nontaxable income.  TurboTax's summary page shows both taxable and nontaxable income.  To see that the amount rolled over is not being included in your taxable income, see that the amount rolled over is excluded from Form 1040 line 16b or Form 1040A line 12b.  You should also see the word ROLLOVER next to this line.

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Level 15

TT is only asking me if pension buyout rolled over into a Roth but no option for a Trad IRA so it's including the amount in my income. Other answers don't seem to help.

To treat it as a rollover to a traditional IRA, TurboTax only needs to know that it was not rolled over to any kind of Roth account.

Yes, the distribution is income, but rolling it over to a traditional IRA makes it nontaxable income.  TurboTax's summary page shows both taxable and nontaxable income.  To see that the amount rolled over is not being included in your taxable income, see that the amount rolled over is excluded from Form 1040 line 16b or Form 1040A line 12b.  You should also see the word ROLLOVER next to this line.

View solution in original post

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