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February 7, 2025
Question

I entered my 401k rollover as income and should not have. It was electronically transfered in to my Roth IRA. How do I correct this?

  • February 7, 2025
  • 2 replies
  • 0 views
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    2 replies

    DawnC
    Employee
    February 7, 2025

    It does get entered under Retirement Income.  Where do I enter a 1099-R?    However, if it was a direct rollover (code G in Box 7), it will not show up as taxable on your actual tax return.   There are follow up questions you have to answer after you enter the form, but rest assured, TurboTax can handle reporting your rollover correctly.    Check your Form 1040 once you are ready to file and verify it is on Line 5a and not 5b.  

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    Employee
    February 7, 2025

    It's not clear what you think needs to be corrected.  Any distribution from a 401(k) is considered to be income reportable of Form 1099-R  What you did with funds determines whether it's taxable or nontaxable income.  If you rolled pre-tax funds from a traditional 401(k) account to a Roth IRA, that would be taxable income.  If done by direct rollover, it would be reported on Form 1099-R with code G in box 7, the gross amount in box 1, the taxable amount in box 2a and the nontaxable amount, if any, in box 5.