I received two 1099-R forms which I have never received before...

[sahs29]

I received two 1099-R forms from Fidelity.  In 2021 I changed jobs and rolled over my previous employer 401K into my new employer 401K in the begining of 2022.  Then my employer was bought out by a different company midyear of 2022. This caused another rollover.  I entered this info from the forms into TurboTax.  It appears the rollover amount is adding to my total income, which now looks significantly higher than 2021.  Is something wrong with how I entered the info?  Or maybe there is an error on the 1099-R forms?  The amount in TurboTax from these 1099-R forms show up as a pension - nontaxable.  TurboTax keeps asking me to re-verify box 1 (gross distribution) & 2a (taxable amount = $0) to make sure the info was entered correctly. It also keeps asking about which boxes in 2b are checked and unchecked. In the 2b box the checked box is Total Distribtution.

[DanaB27 · Accepted solution]

To ensure to rollover is correctly entered into TurboTax, TurboTax should ask you the following questions after you entered Form 1099-R with code G:

1. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
2. On the "Did you move the money to a Roth IRA?" screen answer "No"

Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 5b (taxable amount), it should show $0 and state ROLLOVER next to it.

[sahs29]

Thank you very much on that explaination.  What if one of the 1099-R forms indicates both G & B in box 7 (distribution codes)?  Do I answer the two roth questions differently?

[DanaB27]

When you have codes G & B in box 7 then you will not get these follow-up questions. TurboTax will know it is a nontaxable rollover.

[dondiegoflores]

I'm sorry, but I can't answer your question.  I noticed that a tax expert had responded.  Go with what the expert said.

[sahs29]

Thank you!