Why is my 401k rollover being counted as income?

[telopez87]

It was not a distribution.  I left my previous employer and rolled my 401k from there into my current employer's 401k plan.  It is showing up as part of my total income and this does not make sense to me.

[Patrice · Accepted solution]

The rollover is included in your total income, but it is not considered taxable income.  All distributions must be reported on your tax return.   However, that does not mean that it is being taxed or that it affects your tax in any way. That screen shows all income both taxable and non-taxable. The distribution will show on your tax return with the word ROLLOVER next to it.  You have to check the actual 1040 return.  Line 16b is the taxable amount and it should say ROLLOVER by 16b (1040A line 12b). TurboTax will include the entire distribution on Form 1040 line 16a or Form 1040A line 12a but exclude the amount rolled over from the amount shown on line 16b or 12b.