topic Should a rolled over 401K to Traditional IRA and cashed out IRA be counted twice as income? in Retirement tax questions

Should a rolled over 401K to Traditional IRA and cashed out IRA be counted twice as income?

cjrl3 — Thu, 06 Jun 2019 09:50:12 GMT

We got a 1099-R for my 401K that was rolled over to a traditional IRA when I lost my job. Then I cashed out that IRA in November because I was still out of a job, I got a second 1099-R. When I put them in turbo tax, it looks like it's counting it twice. How can I make sure it only counts the sum once?

No, it shouldn't and it is not counted twice. You see it...

MargaretL — Thu, 06 Jun 2019 09:50:13 GMT

No, it shouldn't and it is not counted twice. You see it on your income summary screen as total income, but the rollover is not included as your taxable income.

You may check this by looking at your form 1040. The rollover from a 401K would be shown in Box 16a, Form 1040. If the entire amount is rolled over (most often with Code "G" in Box 7 of the 1099-R), the line 16b remains blank and the rollover would not be included in taxable income. (Form 1040A line 12a and b). The IRA distribution will show on line 15b form 1040 (Form 1040A line 11b).

Thank you for the thorough response. I was able to look i...

cjrl3 — Thu, 06 Jun 2019 09:50:15 GMT

Thank you for the thorough response. I was able to look it up immediately.

My pleasure, good luck in 2017!

MargaretL — Thu, 06 Jun 2019 09:50:16 GMT

My pleasure, good luck in 2017!