Turbo tax is recognizing my long term gains on my 1099-B from my 401K as taxable income, what do I need to do to have it be not taxable?

[DaveF1006]

To clarify, did you import your 1099B consolidated information?

[dmertz · Accepted solution]

401(k) plans do not issue Forms 1099-B.  Did you receive an in-kind distribution of shares from the 401(k) and subsequently sold the shares outside of the 401(k)?  If so (and your distribution from the 401(k) was not done as a distribution of Net Unrealized Appreciation), upon distribution from the 401(k) that shares are treated as non-covered share with a cost basis equal to the share value upon distribution and a holding period that began on the date of the distribution.

Or are you actually trying to enter a Form 1099-R?  box 2a of a Form 1099-R would normally show the correct taxable amount of the distribution from the 401(k).