Direct Rollover to Tradition IRA

Forum|Forum|2 years ago
April 8, 2024
1 reply
0 views

Background:

My 401K, a qualified plan, was rolled over directly to traditional IRA last year 2023.

Question:

Box 7 Distribution Code shows 'G' in 1099-R and taxable amount in 5b shows 0 in Form 1040, as expected, in Federal return.

However, in NJ state return, Pensions, Annuities and IRAs Wks -TP: Part D General Rule Method below

1. Contribution made to plan: 0

2. Expected return on contract (total sum of distribution - past, present, future): ?

If I entered any amount other than 0, the state tax jumps a lot (roughly 10K). If 0 is entered, Turbo Tax smart check complains 0 is too small and I cannot proceed filing. As I am not yet retired and indeed, there was no withdrawal, it's direct rollover. Not sure why this happens for State tax return in TurboTax!?

Please kindly help and I have been struggled on this issue for a few days (with a lot of researches in vain).

SusanY1

For the contribution made to the plan, instead of 0 use the amount from Box 1 on your 1099-R. That should remove the tax and the error, but please let us know if it does not.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"