Why won't my answer save as "YES" in the income screen where it asks if I rolled over my 401k money into a roth IRA account. when I go back into it, it now says "no"

[krashley2005]

I filled in all my info from my 1099-R form in the income section. My company closed our 401k account and I opted to roll my money into an existing Roth IRA account I had. When I get to the question section asking "was this money rolled over into a Roth IRA?" I choose "Yes".  I continued on with the other questions and saved it. If I go back into edit it, all the previous info has saved correctly except my answer to the question "was this money rolled over into a Roth IRA?". the answer reverts to "No". I am afraid this is causing me to owe a lot of money that I shouldn't in federal taxes. I had $26,237.00 that I rolled over from the 401k to the Roth IRA and now turbo tax is saying I owe $5,099.00 in federal taxes

[macuser_22 · Accepted solution]

The answer to the question is not saved.  It only directs the interview to the next screen.  If you repeat the interview you must choose the correct answer again.

If this was a 401(k) and you rolled (converted) it to a Roth IRA then the box 1 amount is taxable income.  A 401(k) is before tax money and a Roth IRA is after-tax money so you must pay that tax at the time of the conversion.

A rollover to a Traditional IRA is before-tax money rolled to another before-tax account so it is tax free.  You pay the tax when you withdraw from the Traditional IRA.