IRA rollover

[dhoyas2002]

I rolled over my qualified 401K to a traditional IRA.  I received the 1099-R where I took the distribution.  There is no where on Turbo tax that asks if I rolled it over.  It is now counting the distribution as income?  Where do I enter I rolled it over?

[VolvoGirl]

What code is in box 7 on the 1099R?   If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 and make sure it’s right. For 1099R check 1040 line 4a/5a and 4b/5b for any taxable amount. If it was a rollover it should say ROLLOVER by the “b” line and 0 taxable. 

[dmertz]

For a code-G From 1099-R, answering No to both questions that ask if the distribution was rolled over to some kind of Roth account, TurboTax will automatically report the rollover as being to a traditional retirement account.

[Ram0810]

1099-R box code is G and everything shows as stated here on 1040 lines 5a&b. However, Schedule 2, line 8 also reports Additional tax on IRAs. Shouldn't this be zero? Why is the rollover being treated as a taxable distribution?

[VolvoGirl]

@Ram0810   Is line 5b 0 and Rollover written by it?  Or do you have a taxable amount in 5b?  Did they take any withholding out of it?   Is Sch 2 line 8 10% of it for the 10% Early Withdrawal Penalty?   I would delete the 1099R and enter it again Manually (especially if you imported it).  You must have answered a question wrong or skipped one.  

Or did you enter the amount in Deductions as a new IRA contribution?  Don't enter it there.  Only enter it from the 1099R nowhere else.  

[Ram0810]

Yes, line 5b is 0 and Rollover is written by it. This is a full rollover from TIAA to a traditional IRA. No withholding. I entered information from the 1099-R manually the first time and only what is shown in boxes (1, 2a, 7, 15, 16 - everything else was blank). I deleted the 1099-R and re-entered everything manually a second time. I answered every question. Nothing is different. Everything shows the same as before on the 1040 and on Schedule 2, lines 8 and 21.

[VolvoGirl]

Did you make any other IRA contributions?  I'll page @dmertz 

[dmertz]

It's unlikely that the amount coming from Form 5329 is the result of entering the code-G From 1099-R.  Review Form 5329 to see the source of the penalty.

Make sure that you have not reported the rollover as being an IRA contribution.

[Ram0810]

No, I did not make any other IRA contributions.

[Ram0810]

Form 5329-T shows the total rollover amount on line A of the Excess Contributions Smart Worksheet and on lines 15 & 16 of the form.

Also, the income summary screen shows the total rollover amount on the line, Pensions - nontaxable. I  expected this value to be zero.

[dmertz]

"Form 5329-T shows the total rollover amount on line A of the Excess Contributions Smart Worksheet and on lines 15 & 16 of the form."

This implies that you entered this amount as an ordinary traditional IRA contribution as I previously suggested as a possibility.  If you made no IRA contributions, delete the IRA Contribution Worksheet from your tax return.

"the income summary screen shows the total rollover amount on the line, Pensions - nontaxable."

This is correct behavior.

[Ram0810]

I'm not sure where or how I would have entered this amount as an ordinary traditional IRA contribution, but I deleted the worksheet as you suggested and now see the result I expected (i.e., Pensions - nontaxable = 0). This is a first-time step for me, so I very much appreciate your guidance and patience. Thank you!