topic Rollover from 401k to IRA is being called 'Pension and Annuity Distributions' by TurboTax in Get your taxes done using TurboTax

Rollover from 401k to IRA is being called 'Pension and Annuity Distributions' by TurboTax

Tax_Filer_5050 — Thu, 06 Mar 2025 17:46:17 GMT

Received a 1099-R for rollover from 401k to IRA. Taxable amount $0 as expected. But as I proceed through filing, TT throws up a page with the header 'Here is how your retirement and IRA distributions affect your income.' Then in a short table it has 2 rows

Traditional and Roth IRA distributions

Pension and annuity distributions

... and 2 columns titled 'Total' and 'Taxable'.

In this 2x2 grid, the amount from 1099-R is listed on the 'Pension and annuity distributions' row. Why? I am not taking a pension or annuity distribution.

Please advise.

Re: Rollover from 401k to IRA is being called 'Pension and Annuity Distributions' by TurboTax

DavidD66 — Thu, 06 Mar 2025 18:00:55 GMT

It is nothing to be concerned about. The IRS uses two categories/descriptions for distributions from retirement plans: IRA Distributions and Pensions and annuities, lines 4 and 5 of Form 1040, respectively. 401(k) distributions are not IRAs, so they are included on line 5, Pensions and annuities. That's just the way it works. Again, nothing to be concerned about.

Re: Rollover from 401k to IRA is being called 'Pension and Annuity Distributions' by TurboTax

VolvoGirl — Thu, 06 Mar 2025 18:11:09 GMT

Only IRA distributions go on the IRA line (1040 line 4). Everything else goes on the other line and 1040 line 5. A 401K is not an IRA. It will show up as 0 taxable on line 5b with Rollover written by it.

Re: Rollover from 401k to IRA is being called 'Pension and Annuity Distributions' by TurboTax

jpasquale2 — Thu, 26 Feb 2026 03:32:33 GMT

It does without a doubt have an effect and get to state where NJ calls it a pension and levies a state tax (like it’s a withdrawal or income)!! Solve that for me!

Re: Rollover from 401k to IRA is being called 'Pension and Annuity Distributions' by TurboTax

RogerD1 — Thu, 26 Feb 2026 17:23:37 GMT

If you did a direct rollover from a 401(k) to an IRA, the 1099-R box 7 code will either be G (for traditional 401(k) to traditional IRA) or H (for Roth 401(k) to Roth IRA). If this is the case for your 1099-R, there should be a 0 or blank entry for box 2a. This would make it a non-taxable direct rollover.

Once you finish entering the 1099-R details in TurboTax, you'll get asked if you moved the money from a 401(k) to a Roth 401(k) - if this is clicked yes, the distribution will be taxable as a Roth conversion. If you didn't do that, be sure that you click No I didn't.

The next screen on Where is your distribution from? is to determine how it is handled for NJ purposes - this should be checked as None of the above because this is a rollover and not a distribution out of a retirement account.

You'll get asked if you moved the money to a Roth IRA - if your 1099-R was a traditional 401(k) and you click yes here, that will make the distribution taxable - click No if you moved the money to a traditional IRA.

Following the above steps will not make the 1099-R rollover distribution taxable in New Jersey.