IRA rollover

[mcgeary]

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

[Opus 17]

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]

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.