401K rollover to IRA but IRA/SEP/SIMPLE box isn't checked

Forum|Forum|1 year ago
February 7, 2025
2 replies
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In 2024, I rolled my 401K to a traditional IRA (the 401K administrator did not do direct rollovers, so they mailed me a check, which I then deposited into a rollover IRA account with a different financial institution). I received a 1099R from the 401K administrator with distribution code G and the IRA/SEP/SIMPLE box unchecked, so I think TurboTax is treating it as a 401K withdrawal. How do I resolve this?

DavidD66

The IRA/SEP/SIMPLE box is not supposed to be checked because it was not a distribution from an IRA.... It is 401(k) withdrawal, that you rolled into an IRA. After you enter(ed) the 1099-R, there is a page that asks "What Did You Do With The Money From [Retirement Plan]"? Be sure you indicate that you "rolled over all of this money to an IRA or other retirement account (or returned it to the same account)."

Answering these questions correctly will result in your distribution showing up as non-taxable.

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jingtastic

Thank you, the problem is that there was no "What Did You Do With The Money From [Retirement Plan]" page after I entered the details of my 1099R and therefore nowhere to enter that I'd rolled it into an IRA. The questions I got after entering the details of my form were: "Is the IRA/SEP/SIMPLE box on this 1099R checked?" (No), followed by "Did you move this money from a 401K to a Roth 401K?" (No), "Where is you distribution from?" (None of the above), "Do any of these situations apply to you?" about being public safety officer or needing a substitute 1099R (None of these apply), "Did you move the money to a Roth IRA?" (No).

What am I missing?

PB51

I have the exact same experience with the webpages when I try to enter a direct rollover of a 401 plan to an IRA

Alex144

I'm having a similar issue. In 2024 I did a direct rollover of an employer sponsored 401k to an IRA (Roth account for the Roth contributions and traditional account for pre-tax contributions) and TT is indicating an additional tax of $249 on "IRA distributions." On my review page I see the summary, "After applying your deductions, your taxable income was $$$$. Based on this, your total tax before any credits was $$$, which includes an additional tax of $249 on your IRA distributions." The crazy thing is, I deleted my 1099-R forms from my return and it's still trying to incorrectly tax me! The software seems to have an error.