1099-R Box 7 G-Direct Rollover and Rollover Contribution

[mdahlinghaus]

I am working with a 401-K plan that had to be rolled over to another investment firm.  A 1099-R was issued for the entire amount of the 401-K from the previous investment firm.  Box 7 was coded with "G" (Direct Rollover and Rollover contribution).  Went I enter all the correct information into Turbo Tax, it shows that the entire amount of the 401-K as income.  Is this correct?  Even though it was transferred to a new holding firm?

[MinhT1]

Code G in box 7 of form 1099-R means Direct rollover of a distribution to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA.

This is non taxable. You have to indicate in TurboTax that this is a rollover.

In TurboTax Online, enter your form 1099-R by following these steps:

1. Open your tax return
2. Click on Federal in the left-hand column, then on Wages & Income
3. Locate the section Retirement Plans and Social Security and click on the arrow on the right
4. Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
5. Enter your form 1099-R and follow the interview
6. When you arrive to the page Tell us if you moved the money through a rollover or conversion, click on the radio button I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)

[DoninGA]

If you are looking at a Summary screen it will show the distribution as income even when the amount distributed was rolled over to another tax deferred retirement account.

Look at your form 1040 lines 5a and 5b.  On Line 5a the word ROLLOVER should be entered on Line 5b the taxable amount entered should be a 0.

If you using the desktop editions click on Forms and open your Form 1040 to view.

If you are using the online editions -

Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.