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Direct Rollover to Tradition IRA

Background: 

My 401K, a qualified plan, was rolled over directly to traditional IRA last year 2023. 

 

Question: 

Box 7 Distribution Code  shows 'G' in 1099-R and taxable amount in 5b shows 0 in Form 1040, as expected, in Federal return. 

However, in NJ state return, Pensions, Annuities and IRAs Wks -TP: Part D General Rule Method below 

 

1. Contribution made to plan: 0 

2. Expected return on contract (total sum of distribution - past, present, future): ? 

 

If I entered any amount other than 0, the state tax jumps a lot (roughly 10K). If 0 is entered, Turbo Tax smart check complains 0 is too small and I cannot proceed filing.  As I am not yet retired and indeed, there was no withdrawal, it's direct rollover. Not sure why this happens for State tax return in TurboTax!?    

 

Please kindly help and I have been struggled on this issue for a few days (with a lot of researches in vain). 

 

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1 Reply
SusanY1
Expert Alumni

Direct Rollover to Tradition IRA

For the contribution made to the plan, instead of 0 use the amount from Box 1 on your 1099-R.  That should remove the tax and the error, but please let us know if it does not.  

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