topic Pension distribution, non taxable - correct? in Retirement tax questions

Pension distribution, non taxable - correct?

joao1 — Fri, 14 Mar 2025 00:50:09 GMT

Hi all

I received a lump sum pension distribution, with the pension account bank sending a check in the full amount directly to my personal bank. I take it that this is a direct rollover, as subsequently, my personal bank per my instuctions, deposited the full amount for me to an existing retirement managed account.

I did receive a 1099-R indicating in box 2a that the taxable amount is pre-printed <$0.00>

Having never done this, just wanted to make sure I did everything correctly, dotting i's and crossing t's.

Thanks in advance.

joao1

Re: Pension distribution, non taxable - correct?

VolvoGirl — Fri, 14 Mar 2025 00:52:16 GMT

What code is in box 7 on the 1099R? And what account did you put it in? Was it a Traditional IRA or a ROTH IRA?

Re: Pension distribution, non taxable - correct?

joao1 — Fri, 14 Mar 2025 13:27:24 GMT

To VolvoGirl, thanks for responding.

1099-R has G as code for box 7. Transfer was made into a managed retirement account which I am told is a traditional IRA type account, not a ROTH, therefore, no taxes were taken out with the transfer.

joao1

Re: Pension distribution, non taxable - correct?

DanaB27 — Fri, 14 Mar 2025 16:06:51 GMT

Please follow these instructions to enter the rollover:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Click "Continue" and enter the information from your 1099-R
On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
On the "Did you move the money to a Roth IRA?" screen answer "No"

Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 5b (taxable amount), it should show $0 and state ROLLOVER next to it.

To preview Form 1040:

Click on "Tax Tools" in the left menu
Click "Tools"
Click "View Tax Summary" in the Tool Center window
Click on "Preview my 1040" on the left