when I input my 1099R my 401k rmd amount is not being added to my 1040 income. Is this a software glitch.....what can I do .....many thanks

[DoninGA]

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@tyrrlskm wrote:

Box 2A on 1099R does say $10,000 but on 1040 line 5B still says ROLLOVER then 0 in taxable amount.

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Delete the Form 1099-R.  Then re-enter the 1099-R manually.  Pay particular attention to all the follow-up screens after entering the 1099-R tax data.

However if the amount in box 1 and the amount in box 2a of the 1099-R are the same and you have a code G in box 7, there will not be any taxable amount entered on the Form 1040 Line 5b.

@dmertz Could use your expertise on this post  Thank You.

[tyrrlskm]

Thanks, will try manual input and let you know.  Amounts in box 1 and 2A are not the same.

[tyrrlskm]

Still no change using manual input. What do you think about creating a separate 1099R just for the 10,000?

[dmertz]

A rollover from a 401(k) to the traditional IRA is not permitted before taking the RMD from the 401(k).  Did the 401(k) plan mistakenly allow your direct rollover before completing the RMD for the 401(k)?

[tyrrlskm]

Yes, I took the RMD a long time before the rollover.

[dmertz]

I've corrected the second sentence in my previous reply.

If you received a distribution from the 401(k) in 2024 before directly rolling the remainder over to the IRA in 2024, you should also have received a code 7 2024 Form 1099-R from the 401(k) that will be included on lines 5a and 5b of Form 1040.  That Form 1099-R would have the IRA/SEP/SIMPLE box unmarked.  Perhaps you simply have not yet received that Form 1099-R from Vanguard.  The code-G Form 1099-R reports only (or should report only) the amount directly rolled over to the traditional IRA and cannot include anything that was RMD.

[tyrrlskm]

All Vanguard 1099R information including the RMD is on one consolidated statement. 

[VolvoGirl]

Do you get a screen with these 2 questions?

What did you do with the Money?   Say you moved the money to another retirement account.

Then check the box.... You did a combination of rolling over, converting or cashing out the money.

[tyrrlskm]

Yes we did get those questions and confirmed that we rolled over the 401K to a traditional IRA and cashed out the 10,000 to cover the 401K RMD.

[dmertz]

It's my understanding that Vanguard often lists multiple Forms 1099-R on a single sheet.  It seems likely that your sheet has two Forms 1099-R, one with code G and another with code 7.  Each must be entered separately into TurboTax.

[tyrrlskm · Accepted solution]

best wishes and many thanks dmertz....the solution of doing two 1099R's worked!

I think Vanguard should separate out this information