Why 1099-R shows amount on box 2a as taxable income? as I have roll over all money to another custodian. (Spouse death - work distribution to my name) ?

[anjan10]

Spouse passed away in 2021 - I was beneficiary for her profit sharing, (stock) requested to transfer to me all and I roll over to another custodian.  her work HR issued 1099-B and 1099-R,  since I have roll over all money why 1099-R shows some taxable amount?

[HelenC12]

Even though the 1099-R shows the amount as taxable, after you enter your 1099-R, the follow up screens will allow you to enter the monies as a Rollover making them not taxable. In the interim, you may see your tax refund go down or the amount due go up. Don't worry. Once it's entered as a Rollover, TurboTax will remove the taxes and you refund or amount due will be correct.

I'm so sorry for your loss.

[anjan10]

Thank you, HelenC12.. 

Thank you for the condolence. 

One more question> Do I have to report 1099-B along with 1099-R ?

[PattiF]

Yes, you do have to report the 1099-B.

This TurboTax help article has instructions to enter the 1099-B.

[anjan10]

Hello, 

Which form is suggested to enter first 1099-B or 1099-R ? I just want to make sure to enter correctly.

TY

[JulieS]

It doesn't matter which form you enter first.