In Jan 2020 I liquidated an old company 401K account. I became 59 1/2 on Jan 1, 2020.
I understand this money not to be taxable (age > 59 1/2) and it doesn't appear to be so, initially.
However TT asks later if the funds went into a Roth IRA (they did, only incidentally) and now the amount shows as taxable both in the "Tax Due" field at the top of TurboTax and the summary page following income.
Is this a TurboTax processing mistake or is there a reason non-taxable moneys suddenly become taxable when put in to a ROTH IRA?