TurboTax didn't ask if the distribution was rolled over into another retirement account, like your 401(k). Where can I check or enter manually?

Forum|Forum|1 year ago
March 11, 2025
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DoninGA

Have you entered the Form 1099-R? If so, after entering the 1099-R there will be a series of screens asking questions. One of the screens will ask if you rolled over the distribution to another tax deferred account.

dmertz

If the Form 1099-R has code G in box 7 and you indicate in the questions that follow that it was not rolled over to any type of Roth account, TurboTax automatically treats it as a nontaxable rollover to another traditional retirement account.

marbeck2

While TurboTax home & business does ask if the G distribution rolled into a Roth or non-Roth retirement account, it incorrectly continues to include the G rollover distribution as INCOME in the calculations of adjusted gross income AND in the calculation of several aspects that determine owed tax and audit likelihood. NOT good.

dmertz

All distributions from the 401(k) are income as defined in the tax code. All that means is that you must enter the Form 1099-R into TurboTax. What matters is whether the income is taxable, and in this case the rollover makes it nontaxable income with the gross amount on Form 1040 line 5a, none of it included as taxable income on line 5b, an the ROLLOVER notation next to the line.