topic Re: 401k rollover in Retirement tax questions

401k rollover

breckgina — Mon, 17 Feb 2025 00:30:49 GMT

I withdrew from my 401k in December 2024 and redeposited in January 2025 under the 60 day rollover rule. My 2024 taxes show we owe taxes in the withdrawal even though it was redeposited within 60 days. How do I handle the taxes on my 204 return?

Re: 401k rollover

MindyB — Mon, 17 Feb 2025 00:33:06 GMT

You can do this by revisiting the 1099-R section in TurboTax Online. After entering the data, you will come to a screen with the heading "Tell us if you moved the money through a rollover or conversion"

Select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
Next screen will ask "Did you roll over all of this $XXX (Box 1) to another retirement account?", select "Yes, I rolled over $XXX to another traditional IRA or retirement account (or returned it to the same account."

Re: 401k rollover

breckgina — Mon, 17 Feb 2025 00:33:57 GMT

Thank you

Re: 401k rollover

VolvoGirl — Mon, 17 Feb 2025 00:35:15 GMT

Did they take any tax withholding out of it? If they did you need to replace the withholding when you put it back or the withholding becomes a distribution and possibly have a 10% early withdrawal penalty. What code is in box 7?

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. Check line 5b for any taxable amounts. For a rollover line b should be zero and the word Rollover by it.

After you entered the 1099R did it ask what you did with it? Pick you moved the money to another account even if you put it back into the same account. Then that will expand and you pick I rolled over all this money. Then it will expand to enter how much you rolled over.

Re: 401k rollover

user17710989220 — Sat, 14 Feb 2026 21:12:46 GMT

Turbo tax for filing 2025 year does not ask these questions. Did I miss questions or was the program question updated?

Re: 401k rollover

AnnetteB6 — Sun, 15 Feb 2026 16:44:25 GMT

The questions may not come up if your Form 1099-R box 7 code shows that it was a direct rollover to another account. If the code in box 7 shows that you received a distribution from a retirement account, then the rollover or conversion question will be part of your follow-up questions.

To learn more about the box 7 codes and their meaning, take a look at the following TurboTax help article:

What do all the codes in Box 7 of the 1099-R mean?

@user17710989220