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Level 1
posted Mar 1, 2022 11:39:48 AM

Direct rollover of a 401(k) from a deceased spouse account to the account of a surviving spouse

My wife and I had small identical 401(k) accounts.  She passed away in 2021, and her account was a direct rollover into my account.  Even though I entered all of the code information from the 1099 for this rollover transaction (G4), it appears as if TurboTax intends to treat this as taxable income.  I haven't moved beyond that point yet because I'm not certain if the amount of the rollover will be deducted from the total 1099 income on my return. 

0 4 786
4 Replies
Expert Alumni
Mar 1, 2022 11:57:24 AM

I'm sorry for your loss.

 

The rollover is not taxable.

 

In TurboTax, this is how you must enter your 1099-R to make sure that it is treated as a rollover and is not taxable.

 

  1. In TurboTax, open your tax return
  2. Click on Federal in the left-hand column, then on Wages & Income on top of the screen
  3. Scroll down and locate the section Retirement Plans and Social Security and click on Show more
  4. Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
  5. 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).

Level 1
Mar 1, 2022 12:24:48 PM

Thank you for your fast response.  I'm having some trouble following the directions, however.  When I get to the point where I should see "Show More" all I can see is "Learn More" .  Clicking on this opens a dialog box, but the only place I can go seems to be a discussion of Form 5498.  I can't find anything else here...

Expert Alumni
Mar 1, 2022 12:34:43 PM

Are you using TurboTax Online or TurboTax CD/Download?

Level 1
Mar 1, 2022 12:43:12 PM

This year I downloaded the software rather than installing it from a CD.  I think my problem has been resolved, however.  When I moved to the deduction section, the interview topics clarified that the codes from the 1099 I entered for the rollover exempted this rollover from tax liability.  I think the software worked perfectly, so I should be set.  Thank you for your help!