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January 31, 2020
Question

Have a 401 k that was rolled over into a regular Ira why is my return showing it as a filly taxable event ?

  • January 31, 2020
  • 2 replies
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2 replies

January 31, 2020

A direct rollover from a 401(k) to a Traditional IRA is not taxable.

 

Please enter your form 1099-R in TurboTax, paying attention to the code in box 7 which must be G. Then follow the TurboTax interview and indicate that it is a rollover. TurboTax will exclude the rollover from taxation.

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Employee
January 31, 2020

First, confirm that TurboTax is treating it as taxable by seeing that it is being included on Form 1040 line 4d.  If it's appearing there:

 

What is the code in box 7 of the Form 1099-R provided by the payer?

Does the Form 1099-R show a nonzero taxable amount in box 2a?

Does the word ROLLOVER appear next to line 4d of Form 1040?