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posted Apr 10, 2025 2:01:29 PM

401K - 1099-R box 7 G question

My husband's company was sold this year. The new owners closed his 401K and had the accounts cut a check to him. He then had to sign the check over to the new 401K plan. On the 1099-R box 7 has the distribution cod G for Direct Rollover, but it is still showing up as taxable income on my Personal income section of my taxes. Am I doing something wrong or am I just getting it stuck to me?

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2 Replies
Expert Alumni
Apr 10, 2025 3:21:03 PM

No, the distribution should not be showing as taxable on your return. First, check line 5(b) on your Form 1040 and make sure the pension distribution reported on box 5(a) is showing in 5(b). If not, then your pension distribution is not showing as taxable, even though it will show on your tax return. If the distribution is showing as taxable, check to see if it is listed in box 2(a) on your Form 1099-R. The form would be incorrect if that was the case.

 

 

 

 

Level 15
Apr 11, 2025 6:52:48 AM

... make sure the pension distribution reported on box 5(a) is NOT showing in 5(b).