topic Direct IRA non-taxable rollovers showing as Pension Distributions? in Retirement tax questions

Direct IRA non-taxable rollovers showing as Pension Distributions?

newt45 — Mon, 24 Feb 2025 19:12:06 GMT

I understand both IRA and Pension rollovers can show as non taxable on the actual tax form, BUT because they are showing as Pension, instead of IRA distributions, they ARE counting against total income for healthcare marketplace tax credits.

Why do IRA rollovers show as Pension distributions (5a) instead of IRA distributions (4a)? This does not make sense. Thanks!

Re: Direct IRA non-taxable rollovers showing as Pension Distributions?

dmertz — Mon, 24 Feb 2025 21:55:40 GMT

If the rollover is from a traditional IRA, the Form 1099-R from that IRA must have the IRA/SEP/SIMPLE box marked to indicate that the distribution is reportable on Form 1040 lines 4a/4b. If this box is not marked on the Form 1099-R provided by the payer, it indicates that the distribution is not from a traditional IRA.

Pension distributions include distributions from a 401(k), 403(b), 457(b) and the federal TSP. These are not IRAs.

Make sure that the IRA/SEP/SIMPLE box on TurboTax's 1099-R form is marked or unmarked in agreement with the Form 1099-R provided by the payer.

Re: Direct IRA non-taxable rollovers showing as Pension Distributions?

user17706596462 — Mon, 09 Feb 2026 18:02:32 GMT

My 1099R shows the amount distributed from my IRA. The IRA/SEP/SIMPLE box is checked. Part of this distribution was my RMD for 2025. The remainder was rolled over to another qualified IRA. Despite this the total distribution amount is showing up as taxable IRA distribution on TurboTax. I contacted credit union who holds the IRA rolled over and they indicated they have had similar inquiries from others and advised contacting TurboTax. Thank you

Re: Direct IRA non-taxable rollovers showing as Pension Distributions?

MarilynG1 — Tue, 10 Feb 2026 02:30:57 GMT

After you enter your 1099-R in TurboTax, you'll be asked how much of your distribution was RMD. When you enter an amount here, you'll get another screen where you can indicate 'some of this distribution applied to RMD' and again enter the amount.

On the following screen, you can indicate that you 'rolled over less than the (distribution amount)'. The next screen asks the amount rolled over.

@user17706596462