My husband had a rollover of his 401K from a former employer. The first rollover was sent directly to the company that his current 41K is invested in so that had a G code in Box 7. They sent him a check for the balance after dividends, etc. with Federal taxes deducted. I was told to deposit the check and then to write a check for the amount of the check plus the federal taxes that were deducted and send this into to be deposited into his current 401K. When I put this information in for our federal taxes, there was a way to report that this amount was rolled over to his current 401K. It did not flow over to our Pennsylvania state taxes. I had to input the 1099-R's again and it appears that they are going to charge us taxes on the amount the was mailed to us. I can't figure out how to report that this amount was rolled over 100% to my husband's 401K. Does anyone know how or where I report that this was rolled over 100%? We should not be taxed by the state of Pennsylvania since this was a 100% rollover.
