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Why doesn't Turbotax ask me "What did you do with the money from your 401K?"

Entered 1099-R for rollover from 401K to Traditional IRA. Turbotax never presents the question "What Did You Do With The Money From (your retirement fund)?" Turbotax asks if I'm moving the 401K to a Roth IRA (which I'm not), but doesn't offer any other options. What am I missing? Taxable amount is $0.00 and neither "Taxable amount not determined" nor "Total distribution" are checked on my 1099-R.


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1 Best answer

Accepted Solutions
Ashby
New Member

Why doesn't Turbotax ask me "What did you do with the money from your 401K?"

If you entered Code G from Box 7 on the 1099-R entry screen, it is most likely not treated as taxable income because that is the code for rollover. 

The program would only need to know if it was a Roth conversion for tax purposes.

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2 Replies

Why doesn't Turbotax ask me "What did you do with the money from your 401K?"

It goes by the Code in box 7.  Is it a G for direct Rollover?  All it needs to know is if you rolled it to a Roth.  It already knows it was a transfer and you didn't cash it out.
Ashby
New Member

Why doesn't Turbotax ask me "What did you do with the money from your 401K?"

If you entered Code G from Box 7 on the 1099-R entry screen, it is most likely not treated as taxable income because that is the code for rollover. 

The program would only need to know if it was a Roth conversion for tax purposes.

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