topic TurboTax is calculating taxes owed on Thrift Saving Plan direct rollover. in Get your taxes done using TurboTax

TurboTax is calculating taxes owed on Thrift Saving Plan direct rollover.

TSP Challenges — Wed, 11 Feb 2026 04:04:29 GMT

Entered a 1099-R from Thrift Savings Plan into TurboTax for direct rollover to a Traditional IRA and a small amount identified in block 5 to a Roth IRA with a distribution code of G in block 7. This transaction was a direct rollover to Qualified retirement accounts but TurboTax is calculating taxes owed on the full amount. What do I need to correct as there doesn't seem to be a place to enter the amount rollover to the traditional IRA?

Re: TurboTax is calculating taxes owed on Thrift Saving Plan direct rollover.

dmertz — Thu, 08 Feb 2024 21:18:41 GMT

Does box 2a show a nonzero amount?

Does the sum of the amounts in boxes 2a and 5 equal the amount in box 1?

Re: TurboTax is calculating taxes owed on Thrift Saving Plan direct rollover.

TSP Challenges — Thu, 08 Feb 2024 23:17:19 GMT

Thanks for the reply,

Box 1 is ~$100,000.00, Box 2a is $0.00 and box 5 is ~$25,000. We did a direct rollover of ~$75,000 into a Traditional IRA and ~$25,000 into a Roth IRA. No taxes were withheld in box 4.

Thanks

Re: TurboTax is calculating taxes owed on Thrift Saving Plan direct rollover.

TSP Challenges — Thu, 08 Feb 2024 23:52:20 GMT

Did some experimenting and changed the Yes to No on the Page; Was this Money Rolled Over to a Roth IRA? When I answer Yes the ~$75,000 is calculated for taxes, when I answer no then the ~$75,000 isn't taxed which is correct. The problem is the ~$25,000 identified in block 5 was rollover a Roth IRA. Is the correct answer No and block 5 correctly reports to the IRS that the amount is rolled over to a Roth IRA?

Re: TurboTax is calculating taxes owed on Thrift Saving Plan direct rollover.

dmertz — Fri, 09 Feb 2024 02:39:12 GMT

To accommodate TurboTax's limitations, to report a split rollover you must split the Form 1099-R into two. The one for the rollover to the traditional IRA (not to any type of Roth account) will have $75,000 in box 1, $0 in box 2a, $0 in box 5 and code G in box 7 for the portion not rolled over to any type of Roth account. The one for the rollover to the Roth IRA will have $25,000 in box 1, $0 in box 2a, $25,000 in box 5 and code G in box 7.

Re: TurboTax is calculating taxes owed on Thrift Saving Plan direct rollover.

TSP Challenges — Fri, 09 Feb 2024 02:53:56 GMT

Thank you for your assistance.