What if my 401k was rolled to both a traditional IRA and a Roth?

[agentdbl07]

Hi all - Help! This was fantastic info but TT is characterizing my transfer (part Roth and part Trad) as a "pension" when I look at the tax form. What do I do to correct this? It was a 401k direct transfer, not a pension. Thank you for any quick info!

[dmertz]

This is correct behavior by TurboTax.  Only distributions from IRAs go on Form 1040 line 15 or Form 1040A line 11.  All others go on line 16 or 12 with pensions and annuities.  A 401(k) is not an IRA, so it is properly lumped together with other pensions and annuities.

[DanO]

You should get the 1099-R corrected and then file to keep the possible negative repercussions from taking place.

The IRS will get the 1099-R, and that is what they will go by.  They will look at the codes and see how the distributions should be handled and your return could possibly be changed causing a big tax liability as a result of the pre-tax showing up in the Roth which would trigger a taxable income amount.

If you see a potential problem with the return, it would be best to take care of it now rather than having to deal with issues later.  It's easier to take care of a known issue now, before it becomes a major problem later.