IRA consolidation

Forum|Forum|1 year ago
February 28, 2025
2 replies
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I consolidated two IRAs, transferring funds from one institution to another IRA. The 1099 is code G non-taxable. Why does TurboTax treat the transfer as Income? I did not receive the distrubution, it was transferred directly to the gaining IRA account. I understand the transaction was non taxable but it bumped up my total income for 2024 and that is bothersome. These are not new funds. I had the old IRA for 20+ years. Why does my annual income suddenly increase when I did not take distribution of the old funds, but transferred to an existing traditional IRA at another institution.

Best answer by VolvoGirl

Code G is a rollover and not taxable. If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 and make sure it’s right. For 1099R check 1040 line 4a/5a and 4b/5b for any taxable amount. If it was a rollover it should say ROLLOVER by the “b” line and 0 taxable.

MAK70

TurboTax reports the income as required by the IRS. See IRA Distributions.

VolvoGirlAnswer

Employee

dmertz

Employee

And to be clear, this Form 1099-R reports a direct rollover between a non-IRA employer plan and an IRA, not between IRAs. If the movement of funds was truly between IRAs, this Form 1099-R is erroneous even though it's treated as nontaxable.