Individual 401K direct Rollover "distribution"? Showing up as non Taxable pension Income

Forum|Forum|1 year ago
February 10, 2025
1 reply
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I had an individual 401K and individual Roth 401K

The investment company stopped supporting individual 401K's, , so I rolled it directly (same investment company) to a regular IRA and Roth IRA respectively.

No tax implications. Just directly rolled it over.

I got a 1099-R

In TurboTax, I noted I did a direct rollover (regular to regular and Roth to Roth), and there was no tax.

I'm perplexed, as in my Turbo Tax income summary lists it as a "non taxable pension", as part of my income. It isn't really income....just moved it directly in the same fund family.

Did I enter the information incorrectly? I expected it to be some sort of 'memo ' entry at worst. But not reported as income.

Best answer by dmertz

You entered things correctly. The tax code defines this as nontaxable income. As such it must be included only on line 5a of Form 1040 with the ROLLOVER notation and has no other effect on your tax return.

dmertzAnswer

Employee

Tracer-xAuthor

Employee

Thanks very much. I did have an 'actual' rollover, but I do see "rollover" listed on the line you noted. So I'll just ignore the fact that it looks like I had a high income, when I didn't. Optically looks weird, but since there is no tax, that is good.

Thanks so much for your help