I used to work for Harris Corp. with used Fidelity Investments to manage their 401(k) accounts. Harris then sold us to Veritas, and we became known as Peraton, Inc. Harris then terminated all of its Peraton employees. Since I was not longer working for Harris, I had my Fidelity 401(k) closed out and a check was sent to Ameriprise Financial to roll the money over to a traditional IRA. However, your Turbo Tax S/W is screwing all of this up and including this 401(k) as taxable income and Turbo Tax says that I now owe more IRS taxes. The form that Fidelity sent me was not a full-blown 1099R, but the note contained information that I could make a 1099R from what they sent. I used Turbo Tax to create this makeshift 1099R and I entered the "G" code on this form, which states that the money is a roll over and should be pre-tax until I start taking it out. What's wrong?
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My case was a little different, but I had the same problem answering box 7 in Turbo Tax. I closed a 401(k) that I had with an old company that I no longer work for and roll over the money into a (pre-tax) traditional IRA, so I would not have to pay taxes on this pre-tax 401(k) money right now. I answered "G" to box 7, which was for pre-tax or untaxed rollovers, but Turbo Tax insisted on calling the money a post-tax Roth IRA, and now I suddenly owed more 2018 taxes, which should not have been the case at all. Clearly, Turbo Tax has a S/W problem using box 7 and 1099R's. So, you need to call the IRS help line.
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