Wife received a 1099 R in 2016 (she retired 31 Dec 15. Amount was rolled over into an annuity. How do I reflect this so as not to pay unnecessary tax?

kellyja4321 · ‎June 4, 2019

A 1099 R is taxable income. Roll overs are not taxed until you withdraw from the account. Right?

MargaretL · ‎June 4, 2019

You are correct. Rollovers are not considered taxable income, but they must show on your tax return anyway. If your wife's form 1099-R box 7 shows code G, all you have to do is enter the form into TurboTax exactly as it appears and the rollover will be shown automatically. If you have any other code in box 7, when going through data entries, TurboTax will ask what you (your wife) did with the money. You will be able to indicate that money was moved to another retirement account - this option will ensure rollover, nontaxable treatment on your tax return.(see pic).

Please follow below steps to enter your form 1099-R:

Federal Taxes
Wages and Income
Scroll down to Retirement Plans and Social Security
Select IRA, 401(k), Pension Plans (1099-R)

View solution in original post

MargaretL · ‎June 4, 2019

You are correct. Rollovers are not considered taxable income, but they must show on your tax return anyway. If your wife's form 1099-R box 7 shows code G, all you have to do is enter the form into TurboTax exactly as it appears and the rollover will be shown automatically. If you have any other code in box 7, when going through data entries, TurboTax will ask what you (your wife) did with the money. You will be able to indicate that money was moved to another retirement account - this option will ensure rollover, nontaxable treatment on your tax return.(see pic).

Please follow below steps to enter your form 1099-R:

Federal Taxes
Wages and Income
Scroll down to Retirement Plans and Social Security
Select IRA, 401(k), Pension Plans (1099-R)

Wife received a 1099 R in 2016 (she retired 31 Dec 15. Amount was rolled over into an annuity. How do I reflect this so as not to pay unnecessary tax?