Received a 1099-R for rollover from 401k to IRA. Taxable amount $0 as expected. But as I proceed through filing, TT throws up a page with the header 'Here is how your retirement and IRA distributions affect your income.' Then in a short table it has 2 rows
Traditional and Roth IRA distributions
Pension and annuity distributions
... and 2 columns titled 'Total' and 'Taxable'.
In this 2x2 grid, the amount from 1099-R is listed on the 'Pension and annuity distributions' row. Why? I am not taking a pension or annuity distribution.
Please advise.
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It is nothing to be concerned about. The IRS uses two categories/descriptions for distributions from retirement plans: IRA Distributions and Pensions and annuities, lines 4 and 5 of Form 1040, respectively. 401(k) distributions are not IRAs, so they are included on line 5, Pensions and annuities. That's just the way it works. Again, nothing to be concerned about.
Only IRA distributions go on the IRA line (1040 line 4). Everything else goes on the other line and 1040 line 5. A 401K is not an IRA. It will show up as 0 taxable on line 5b with Rollover written by it.
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