Have a Tax Question? Ask a Tax Expert
Even though you do need to report all four of those forms, at the same time you will show that $62,000 of the total was rolled over in to another qualified plan.
On the 1099-R that you received from the rollover of your 401k to an IRA plan, it should show $62,000 in box 1 as the distribution amount, but then in box 2 it should show the taxable amount as zero. TT will ask you for information in both of those boxes. Just be sure to enter zero as the taxable amount from that form.
Thank you garbean
Hello again garbean,
It will still show the total distribution as $102,000. That part will not change. But it will not show that entire amount as being taxable as long as you entered -0- in box 2 of the one 2099 form for $62,000.
When you are done completing your return, look at the form before you file it. On form 1040, lines 15a and 16a should total $102,000. But lines 15b and 16b should only total to $40,000. And that is the only amount you will pay tax on.
If your forms do not show that, then you are not answering the questions properly in TT.