topic Rollover Investments in Retirement tax questions

Rollover Investments

vmanno03 — Mon, 23 Feb 2026 12:17:17 GMT

I rolled my pension account from a 403B to a standard 401K with the same company.

I recorded it on my taxes. Should I have NOT have reported it?

It is charging me the amount as income.

Re: Rollover Investments

Opus 17 — Fri, 17 Feb 2023 20:21:52 GMT

First, are you sure that's what you did? 403b plans can only be offered by non-profits. It would be very unusual for the same company to have a 401k and a 403b.

Second, if you got a 1099-R from the 403b, one of the first questions after entering the 1099 is "did you rollover these funds to another qualified account?" You should answer Yes, and the withdrawal won't be taxable. (Note that you must complete the rollover within 60 days or it doesn't count.)

Re: Rollover Investments

vmanno03 — Fri, 17 Feb 2023 20:40:01 GMT

Yes it is the same investment company. I had a 403B from a non-profit company.

All the questions about rolling over in turbo tax asks about a Roth. I did not rollover to a Roth.

I did not see this question as mentioned below:

"did you rollover these funds to another qualified account? Answer yes.

Re: Rollover Investments

vmanno03 — Fri, 17 Feb 2023 20:41:15 GMT

Can't I just remove it? I did not receive any of the money so it should not be counted as income anyway.

Re: Rollover Investments

Opus 17 — Fri, 17 Feb 2023 20:51:49 GMT

@vmanno03 wrote:

Can't I just remove it? I did not receive any of the money so it should not be counted as income anyway.

If you received a 1099-R and you don't report it on your tax return, the IRS will assume the entire amount is taxable and subject to penalties, late fees and interest and send you a bill. You will then need to appeal the bill by reporting it was a rollover, possibly you will have to provide additional proof of the rollover, and if you don't appeal within 30 days the tax due becomes final.

Basically, all your income is assumed to be taxable unless you claim something different in writing. If the IRS sees the income, and you haven;t properly explained it on your tax return, they will bill you for the tax they think you owe.

Best to do it right the first time.

Re: Rollover Investments

dmertz — Sat, 18 Feb 2023 03:31:11 GMT

If the Forms has code G in box 7, make sure that box 2a has a zero to indicate that the rollover is nontaxable. The distribution from the 403(b) is considered to be income, but nontaxable income. This nontaxable income must be reported on Form 1040 line 5a but the rollover means that the entire amount is excluded from taxable income on line 5b. It has no other effect on your tax return.

Re: Rollover Investments

vmanno03 — Fri, 17 Feb 2023 21:51:57 GMT

Thank you for your help.