topic Rollover distribution showing as taxable in Retirement tax questions

Rollover distribution showing as taxable

dnelson42tt — Mon, 08 Mar 2021 13:41:16 GMT

I did a direct rollover from a 401k to a traditional IRA. I received a 1099-R coded G in box 7 and the IRA/SEP/SIMPLE box is not checked. The taxable amount in box 2a is $0.00, the Taxable amount not determined box 2b is not checked, and the Total distribution box 2b is checked. I also received a Form 5498 that shows the rollover contribution to my new IRA. I never received the rollover funds. The problem is TurboTax is showing the rollover amount is taxable. What could I be doing wrong?

Re: Rollover distribution showing as taxable

AnnetteB6 — Mon, 08 Mar 2021 13:58:55 GMT

More than likely you have mistakenly indicated in the follow-up questions that the distribution was rolled over to a Roth IRA.

Go back through the Form 1099-R section and edit your Form 1099-R. Without making any changes, click Continue to review all of the follow-up questions again. The first question will ask if it was rolled into a Roth 401k or 403b. Answer No. The next question will ask if it was rolled into a Roth IRA. Be sure to answer No to this question as well, then it is assumed that it was rolled to a Traditional IRA and therefore not taxable.

Re: Rollover distribution showing as taxable

dnelson42tt — Mon, 08 Mar 2021 17:07:19 GMT

I already looked at both of those questions and I answered No to both. No to rolled over to Roth 401k and No to rolled over to Roth IRA. I must be something simple (and stupid) that I've done to cause that. Any other ideas???

Re: Rollover distribution showing as taxable

DanaB27 — Mon, 08 Mar 2021 17:23:43 GMT

Please check Form 1040 line 5b it should say $0 and state ROLLOVER next to it. Please be aware that the distribution will be included on the TurboTax summary page which shows gross income.

If this doesn't help then try to delete and reenter the Form 1099-R.

Login to your TurboTax Account
Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Make sure you answer "No" to the follow up questions "if it was rolled into a Roth 401k or 403b" and "if it was rolled into a Roth IRA"

If you still need help after trying this then you might need more detailed help. Please see What is the TurboTax phone number?

Re: Rollover distribution showing as taxable

dnelson42tt — Mon, 08 Mar 2021 23:36:57 GMT

Thanks. I had to look at the 1040 to actually see what was included in the taxable income. The info shown in TurboTax was a little confusing and misleading. Everything is good now and i really appreciate your help.