topic Do I need to report 401k Rollovers as IRA Contributions? In one section it showed them as income and in another it did not. Important for next round of stimulus. in Retirement tax questions

Do I need to report 401k Rollovers as IRA Contributions? In one section it showed them as income and in another it did not. Important for next round of stimulus.

Analytics4life — Thu, 04 Mar 2021 15:01:01 GMT

My wife and I both rolled over 401Ks to rollover IRA accounts last year. I entered both 1099s which showed 0 as taxable. On one TT screen it showed it as income, but on the "Your final numbers" screen it does not show those amounts in the total. Do I need to enter the contributions from our year end statements as IRA contributions?

Re: Do I need to report 401k Rollovers as IRA Contributions? In one section it showed them as inc...

JohnB5677 — Thu, 04 Mar 2021 15:21:12 GMT

Do not include the rollover as an IRA contribution.

You should have received a 1099-R for the full amount you withdrew from your 401(k). This initially is taxable if you did nothing else with it.

However, you rolled all of it (I presume) into a traditional IRA. This maintains the non-taxable status.

As you went through the interview to post the 1099-R it would have asked "What did you do with the money?". It sounds like you correctly answered that you rolled it into another retirement account.

Re: Do I need to report 401k Rollovers as IRA Contributions? In one section it showed them as inc...

darkfire35 — Wed, 16 Feb 2022 01:59:20 GMT

Aloha,

I would appreciate some help with my 401K rollover. I rec'd a 1099-R for my withdrawal of my traditional 401K (from one company) from Merrill Lynch(Bank of America) and rolled it over into a traditional 401K with Fidelity (to the new company). However, the Turbo Tax program asks if I rolled my traditional 401K into a Roth 401K. There is no prompt for a one traditional 401K to another traditional 401K.

Please advise. Thank you so much for your time.

Re: Do I need to report 401k Rollovers as IRA Contributions? In one section it showed them as inc...

RobertB4444 — Wed, 16 Feb 2022 03:45:41 GMT

@darkfire35 Could you please answer a couple of questions? Is there a number in box 2a of your 1099-R? What code is in box 7 of your 1099-R?

Re: Do I need to report 401k Rollovers as IRA Contributions? In one section it showed them as inc...

darkfire35 — Wed, 16 Feb 2022 06:31:58 GMT

Aloha RobertB4444,

Box 2a is 0.00. and box 7 is G.

Thanks for your time.

Re: Do I need to report 401k Rollovers as IRA Contributions? In one section it showed them as inc...

RaifH — Wed, 16 Feb 2022 13:41:50 GMT

Yes, you do need to report these 1099-Rs. They are not taxable rollovers. When the TurboTax system asks about whether you are rolling it over into a Roth, it is just trying to determine if it should be taxable. Answer No to this question. Once it is entered properly, you should not see your taxes change.

@darkfire35

Re: Do I need to report 401k Rollovers as IRA Contributions? In one section it showed them as inc...

darkfire35 — Wed, 16 Feb 2022 21:41:12 GMT

Thank you very much for your time.

What I'm concerned about, is I did answer as you suggested, but Turbotax is showing my rollover as income for 2022. Although not taxable, I believe it should not be showing as part of my income when I've rolled it over into another 401K. At the end, it shows my income increased by 30%+!

Re: Do I need to report 401k Rollovers as IRA Contributions? In one section it showed them as inc...

ThomasM125 — Wed, 16 Feb 2022 22:26:52 GMT

@darkfire On your form 1040, in line 4(a) IRA distributions may show as income on your tax return, but in line 4(b) the taxable amount of the distribution will show as -0- if the rollover is not taxable. I believe that is why the distribution is showing as income on your TurboTax screen.

You can view your form 1040 to see how your pension distribution is being listed while working in the online version of TurboTax by following these steps:

While working on your return in the Federal section of TurboTax:

1. Choose the Tax Tools icon on your left menu bar

2. Tools

3. View Tax Summary

4. Choose the Preview my 1040 on your left menu bar