Why is my 401K rollover increasing my AGI?

Forum|Forum|4 years ago
February 16, 2022
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Why is my 401K rollover increasing my AGI and causing me to break the ROTH IRA income limit?

ThomasM125

A traditional to traditional IRA rollover would not increase your income, but a rollover from a traditional IRA to a ROTH IRA would be taxable. I suggest you review your entries in TurboTax to make sure you entered your form 1099-R reporting the distribution properly.

Normally, a tax-free rollover will have code "G" in box 7 on your 1099-R form. Also, you will be asked if you did a qualifying rollover after your enter your form 1099-R in TurboTax. You need to make sure you reported the form properly and gave the correct answers in TurboTax.

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wofat

I followed the instructions step-by-step (and indicated not a conversion to Roth IRA et al) and it still increased my AGI.

AmyC

401k is pretax dollars and are normally rolled into a traditional IRA to avoid being taxed. If you rolled pretax dollars in to a ROTH, you must include the income.

@wofat

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