topic On a 401K rollover to an IRA, there was a Capital loss. Does this get entered in TurboTax? in Retirement tax questions

On a 401K rollover to an IRA, there was a Capital loss. Does this get entered in TurboTax?

knitmess1957 — Mon, 23 Feb 2026 10:51:17 GMT

Following retirement, I rolled over a 401K into an IRA. At the time of the rollover, Fidelity reported a Capital Loss, since the total contributions was more than the amount transferred to the IRA. I don't see anything on the 1099-R related to the Capital Loss. How do I report the Loss in Turbotax? The total loss is over $10K.

Re: On a 401K rollover to an IRA, there was a Capital loss. Does this get entered in TurboTax?

dmertz — Sun, 15 Jan 2023 01:55:36 GMT

The drop in value is not reportable and is not deductible. It just means that you presently have $10k less deferred income that will be taxable in the future.

Re: On a 401K rollover to an IRA, there was a Capital loss. Does this get entered in TurboTax?

knitmess1957 — Sun, 15 Jan 2023 02:13:22 GMT

Ok. I will have to check with my Financial Advisor on how this will affect future events / withdrawals from the IRA. I would like to think that this unrealized loss gets tracked/transferred from the 401K into the IRA. The turndown in the market this year hit hard.

Re: On a 401K rollover to an IRA, there was a Capital loss. Does this get entered in TurboTax?

VolvoGirl — Sun, 15 Jan 2023 02:16:22 GMT

No it shouldn't be tracked or transferred. You just will have less balance to take out, so less tax. Unless the market goes back up. The amount rolled over to the IRA was less.