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.
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.