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Level 2
posted Mar 24, 2021 6:06:30 PM

Does 401k rollover to 457b count as income?

Last year I switched jobs and I rolled the 401k I had with my old employer over to a 457b with my new job. I have a 1099-R that says the taxable amount is $0, but inputing my info it is counted towards my income which is putting me in a higher bracket and costing me quite a bit of money. Is this right or am I doing something wrong?

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1 Replies
Expert Alumni
Mar 25, 2021 9:52:36 AM

No, it should not count as income.

 

Go back to the posting of the 1099-R.

 

Once entered there are a series of questions. 

  • One is Tell us if you moved the money through a rollover or conversion.
  • Select I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)

This will take it out of your taxable income.

 

This is how to post a 1099-R

  1. Login to your TurboTax Account 
  2. Click "Wages & Income" on the top
  3. Scroll down to  "IRA, 401(k), Pension Plan Withdrawals (1099-R)" 
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue"