topic IRA rollover in Deductions & credits

IRA rollover

dhoyas2002 — Sun, 23 Feb 2025 22:44:45 GMT

I rolled over my qualified 401K to a traditional IRA. I received the 1099-R where I took the distribution. There is no where on Turbo tax that asks if I rolled it over. It is now counting the distribution as income? Where do I enter I rolled it over?

Re: IRA rollover

VolvoGirl — Sun, 23 Feb 2025 22:45:40 GMT

What code is in box 7 on the 1099R? If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 and make sure it’s right. For 1099R check 1040 line 4a/5a and 4b/5b for any taxable amount. If it was a rollover it should say ROLLOVER by the “b” line and 0 taxable.

Re: IRA rollover

dmertz — Mon, 24 Feb 2025 00:19:49 GMT

For a code-G From 1099-R, answering No to both questions that ask if the distribution was rolled over to some kind of Roth account, TurboTax will automatically report the rollover as being to a traditional retirement account.

Re: IRA rollover

Ram0810 — Sat, 12 Apr 2025 17:54:21 GMT

1099-R box code is G and everything shows as stated here on 1040 lines 5a&b. However, Schedule 2, line 8 also reports Additional tax on IRAs. Shouldn't this be zero? Why is the rollover being treated as a taxable distribution?

Re: IRA rollover

VolvoGirl — Sat, 12 Apr 2025 18:06:49 GMT

@Ram0810 Is line 5b 0 and Rollover written by it? Or do you have a taxable amount in 5b? Did they take any withholding out of it? Is Sch 2 line 8 10% of it for the 10% Early Withdrawal Penalty? I would delete the 1099R and enter it again Manually (especially if you imported it). You must have answered a question wrong or skipped one.

Or did you enter the amount in Deductions as a new IRA contribution? Don't enter it there. Only enter it from the 1099R nowhere else.

Re: IRA rollover

Ram0810 — Sat, 12 Apr 2025 18:37:09 GMT

Yes, line 5b is 0 and Rollover is written by it. This is a full rollover from TIAA to a traditional IRA. No withholding. I entered information from the 1099-R manually the first time and only what is shown in boxes (1, 2a, 7, 15, 16 - everything else was blank). I deleted the 1099-R and re-entered everything manually a second time. I answered every question. Nothing is different. Everything shows the same as before on the 1040 and on Schedule 2, lines 8 and 21.

Re: IRA rollover

VolvoGirl — Sat, 12 Apr 2025 18:42:37 GMT

Did you make any other IRA contributions? I'll page @dmertz

Re: IRA rollover

dmertz — Sat, 12 Apr 2025 18:43:14 GMT

It's unlikely that the amount coming from Form 5329 is the result of entering the code-G From 1099-R. Review Form 5329 to see the source of the penalty.

Make sure that you have not reported the rollover as being an IRA contribution.

Re: IRA rollover

Ram0810 — Sat, 12 Apr 2025 20:28:08 GMT

No, I did not make any other IRA contributions.

Re: IRA rollover

Ram0810 — Sat, 12 Apr 2025 20:43:35 GMT

Form 5329-T shows the total rollover amount on line A of the Excess Contributions Smart Worksheet and on lines 15 & 16 of the form.

Also, the income summary screen shows the total rollover amount on the line, Pensions - nontaxable. I expected this value to be zero.

Re: IRA rollover

dmertz — Sat, 12 Apr 2025 20:55:47 GMT

"Form 5329-T shows the total rollover amount on line A of the Excess Contributions Smart Worksheet and on lines 15 & 16 of the form."

This implies that you entered this amount as an ordinary traditional IRA contribution as I previously suggested as a possibility. If you made no IRA contributions, delete the IRA Contribution Worksheet from your tax return.

"the income summary screen shows the total rollover amount on the line, Pensions - nontaxable."

This is correct behavior.

Re: IRA rollover

Ram0810 — Sat, 12 Apr 2025 21:33:06 GMT

I'm not sure where or how I would have entered this amount as an ordinary traditional IRA contribution, but I deleted the worksheet as you suggested and now see the result I expected (i.e., Pensions - nontaxable = 0). This is a first-time step for me, so I very much appreciate your guidance and patience. Thank you!