nontaxable 1099-R is treated as income?

[oldyoungguy]

I bought some Athene Agility 10 Annuity by using my 401K money this year.  I imported the 1099-R from Fidelity. The money is nontaxable. It is listed as "Pensions - nontaxable" under the Income category. So my total income for the year 2023 is a much bigger number.  Is that right? I don't think it is my income. The money is NOT in my hand now.  Is there anything wrong?

[DavidD66]

No.  The program is showing it as non-taxable income because it was reported as a distribution.  This is similar to what your Form 1040 will reflect.  Line 5a of Form 1040 shows distributions from "Pensions and Annuities" and Line 5b shows "Taxable amount" of line 5a.  As long as it is showing as nontaxable you have nothing to worry about. 

[VolvoGirl]

What code is in box 7 on the 1099R?  If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. Check lines 4b & 5b for any taxable amounts. For a rollover line b should be zero and the word Rollover by it. 

[oldyoungguy]

Will this income difference affect the eligibility for this year's IRA/401K contribution?

[oldyoungguy]

G is in box 7.