IRA rollover

Forum|Forum|6 years ago
March 9, 2020
2 replies
3 views

Why does a retirement account roll-over to a different account count as income?

Opus 17

Level 15

If you get the check or money in your account (instead of a direct plan-to-plan transfer), Turbotax will assume it is a taxable distribution until you get to the question where you are asked what you did with the money. There should be a box you can check for "I rolled it over into a different qualified account within 60 days" that will remove the tax. You have to tell Turbotax what you did, the program does not assume.

SusanY1

Level 15

It will show as income for tracking purposes, but it does not count as taxable income. When you view your Form 1040 you will see the income listed in a column on the left and not added into your taxable income. For an IRA this will be Line 4a (for a 401k or other retirement account, it will be Line 4c). You can view your 1040 before you file by following these steps:

Login toTurboTax.com.
Click on Tax Home on the left side of the screen.
If prompted, click on Continue where I left off or Take me to my return.
Click on Tax Tools.
Click on Tools.
In the box that pops up, click View Tax Summary under Other helpful links.
Once your Tax Summary is displayed, click on Preview my 1040 in the column on the left.