topic Re: 401k rollover in Retirement tax questions

401k rollover

katmc58 — Wed, 11 Feb 2026 08:46:35 GMT

My husband had his 401K rolled over into his traditional IRA after he stopped working for a company. on the 1099-R is shows a total distribution and in box 7 the code is "G" for complete rollover and taxable amount is 0. Why is it showing up as income?

Re: 401k rollover

DaveF1006 — Mon, 08 Apr 2024 14:29:41 GMT

It depends on where it is showing up as taxable. It shouldn't. Here is a way you can really tell if it is taxable or not.

If you are working in Turbo Tax online go to:
Tax Tools
Tools
Preview my 1040
Look at Lines 5A and 5B. 5A should have an amount recorded with the notation rollover in the box but nothing should be reported in Line 5B.
If you are working in the software, go to the forms mode and then look at the 1040.

if there is still an amount in Box 5B, you may have rolled this amount into a Roth account. If this is the case then the amount is fully taxable because you are moving money from a tax-deferred plan into a plan funded solely with after-tax dollars.

Re: 401k rollover

katmc58 — Mon, 08 Apr 2024 14:44:44 GMT

on my form 1040 in 5a it does have the amount with the notation rollover and there is nothing in 5b.

Re: 401k rollover

dmertz — Mon, 08 Apr 2024 21:01:11 GMT

Then this is nontaxable income which has no effect on your filed tax return other than needing to be included on line 5a and excluded from taxable income on line 5b with the ROLLOVER notation.