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Level 2
posted Feb 21, 2022 7:25:47 PM

Why is my 401k rollover to simple ira counting as income?

0 5 1046
1 Best answer
Level 2
Feb 23, 2022 5:48:11 AM

Thank you, you were right!!

5 Replies
Level 15
Feb 21, 2022 7:29:46 PM

To a Traditional IRA account or a ROTH?

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right.

 

If you rolled it over it should say Rollover to the left of the taxable amount on 4b or 5b.   

 

Level 2
Feb 21, 2022 7:37:25 PM

Traditional IRA. My code in #7 is G for rollover. The questions I get is if I moved to a Roth IRA and I say no, next is For rollovers to other types of retirement accounts (such as a traditional IRA), just answer No. Then no more questions and money shows as income. 

Expert Alumni
Feb 21, 2022 8:41:50 PM

You need to answer "yes" that you did make a rollover to other types of retirement accounts, because a transfer to a Simple IRA counts as such a rollover.

Level 15
Feb 22, 2022 8:47:38 AM

Code G is for direct rollover.  You don't need to enter anything else.   Double check 1040 line 4a and 4b.  As I said above.....

 

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. Before filing you can preview the 1040 or print the whole return
https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-filing/00/26160

Level 2
Feb 23, 2022 5:48:11 AM

Thank you, you were right!!