401K rollover to IRA - amount is being totalled in my total income - how to remove?

Forum|Forum|1 year ago
March 31, 2025
1 reply
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I think my IRA rollover was actually a direct rollover. Here's more info.

1099-R form for my 401k rollover is filled out like the following:

1. has the full amount of 401K

2a. 0.00

2b. blank

3. 0.00

4. 0.00

5. 0.00

6. 0.00

7. G

IRA/SEP/Simple blank

Fidelity, the administrator for my previous employer's 401K, sent the check to me. The check read:

Pay to the order of: Minn Life TR IRA. Within 2 weeks, I sent the check, Minn Life received the check and my new IRA was opened. I received a paper from the Minn Life administrator stating Transaction Activity, Date, Rollover, plan type Individual Retirement Annuity, the amount of the check from Fidelity.

When I entered the 1099-R form info into TurboTax Premier, I do not get a question asking what I did with the money. I thought the "G" means a direct rollover from one IRA to another. The rollover has increased my income to 3 times my usual yearly income. I wonder if that increase is responsible for the government now wanting me to make quarterly estimated payments.

AnnetteB6 - You suggested: Try going back to where you entered the Form 1099-R. One of the follow-up questions should ask What Did You Do With The Money? and the answer choices are 'moved the money to another retirement account' or 'did something else'. Choose the 'moved the money to another retirement account' option and then select that it was 'rolled over'.

I only get the question What Did You Do With The Money? when I am entering the 1099-R forms for my pension plans. In those cases Box 7. Has a "7" in it, not a "G" like with my rollover

I'm sorry if I have posted this multiple times. I'm new to posting in Turbo Tax and still confused about replying versus posting a question.

DanaB27

To ensure to rollover is correctly entered into TurboTax, TurboTax should ask you the following questions after you entered the 1099-R with code G:

On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
On the "Did you move the money to a Roth IRA?" screen answer "No"

Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 5b (taxable amount), it should show $0 and state ROLLOVER next to it.

To preview Form 1040: