Rollover IRA

[jimandtoni]

Im retired now and am receiving monthly payments from an old employer 401k that i rolled over to an annuity, I also have a 41k from my last employer that i rolled over but am not taking any money out and when i enter the info its totaling the money i receive monthly and the money i rolled over. I dont believe the roll over 401k money should be added to the 1099-R form as income but it is.

[LeonardS]

You should receive 2 1099-R's.  One will be to report the rollover distribution, the second will be for the distributions you took as monthly payments.

You will enter each 1099-R separately.  The 1099-R for the rollover will not be added to the monthly payments you received.  

 Follow these steps to enter your 1099-R:

1. Open (continue) your return if you don't already have it open
2. Search for 1099-R and select the Jump to link in the search results
3. Answer Yes on the Did you get a 1099-R? screen
   • If you land on the Review your 1099-R info screen instead, select Add Another 1099-R
4. Answer any questions until you get to the import screen. You'll be prompted to enter your financial institution account info and TurboTax will directly import your forms
   • If you prefer to type it in yourself, select Change how I enter my form and continue.

This link Where do I enter my 1099-R? has information you may find helpful.

[jimandtoni]

I did receive 2 1099Rs one from venerable annuity that i receive the monthly payments from and one from vanguard that I rolled the 104k out of. I rolled over the 104k from vanguard to Etrade so should I get another 1099R from Etrade showing it was a direct rollover?

[VolvoGirl]

No.  Only get a 1099R from Vanguard.   You might get a 5498 from Etrade showing the deposit.  But you don't report or enter the 5498.

[jimandtoni]

But it's showing what I got from the annuity for the year and all the money from the rollover 401k as a total so my tax bill is shot up.

[LeonardS]

Did you complete the rollover within 60 days from when you took the distribution?  If you took longer than 60 days then the total distribution becomes taxable.  

[jimandtoni]

I didnt take a distribution, the 401k was from the company i retired from so I could have left it there forever but i rolled it over to Etrade. If thats what's called a distribution then yes it was done within 60 days when I had it rolled over to Etrade

[AmyC]

You took the money into your hands and gave it to Etrade so you took a distribution and started the 60 day clock. If the company had sent it straight to Etrade, you would have a rollover code in box 7 and no issue.  However, since you took possession of the money, you have a code showing that you have the money. You need to tell the program that you rolled the money over. The program will ask questions.

Let me just assume that you have a code 7 in box 7 for normal retirement. Please return to your 1099-R and follow along.

After entering the 1099-R, it asks about:

1. Public Safety Officer and
2. then says Where is This Distribution From?
3. Was this from a Qualified Plan - select Qualified Plan
4. What did you do with the money? Select moved to another retirement account
5. Drop down appears, select moved all or part
6. Continue
7. Then you should see no tax if you rolled the full amount.

[jimandtoni]

I didnt take the money it was directly rolled over to Etrade. box 7 has a G in it. I nust be doing something wrong because it did not ask me about a qualified plan or move to  another retirement plan.

[DawnC · Accepted solution]

If it has a code G, it is already classified as a direct rollover.    You won't get any rollover questions about a 1099-R with a code G.   TurboTax is not applying any tax to the 1099-R with code G.   Look at your Form 1040.   Look on Line 5a and b.     The amount of your 1099-R with the G code in Box 7 will not show as taxable.     Click on Forms in the upper right hand corner and then locate Form 1040 from the list on the left to review it.  

What do all the codes in Box 7 of the 1099-R mean?   

[jimandtoni]

Line 5a on form 1040 shows the entire amount of the roll over and line 5b shows 0

[DawnC]

That is how it should show.  So TurboTax is not applying any tax to the amount in 5a.   You are just reporting the direct rollover which is a non-taxable transaction.  😉

[VolvoGirl]

Good 5b is the taxable amount.   But you should at least have the actual withdrawals listed on 5b.  Or the annuity might be in a IRA which is on line 4a and 4b.    And it should say ROLLOVER by line 5b.