401K distribution rollover

Forum|Forum|6 years ago
February 17, 2020
1 reply
12 views

Why is a 401K distribution shown on a 1099-R form which was rolled over into another IRA shown as income? It's shown as non-taxable, box 2a, and box 7 is marked "G".

MinhT1

Level 15

After you enter your form 1099-R, continue the interview to indicate (or confirm) that this is a rollover. TurboTax will exclude it from taxation.

On the income summary, you will see the distribution in Gross Income, but not taxable income.

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Kurt5

Level 2

What will these calculations showing rollovers as Gross Income do to calculations for ACA subsidies? When estimating my income for ACA subsidies I certainly was not taking into account rollovers from one retirement account to another retirement account.

DaveF1006

Level 15

it depends on the rollover. According to this Turbo Tax link, your original retirement account was funded with pre-tax dollars, and you rolled it into a Roth IRA, then the income would be includable income in determining ACA subsidies.

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