Turbo Tax Is Counting Multiple 1099-Rs Toward My AGI

Submitted by Fragrant-Anxiety6162 t3_10ojnus in personalfinance

I rolled over $1536.55 from my previous employer Vanguard 401k to my current employer Fidelity 401k. I then withdrew $1546.54 as it was eligible for me to withdraw it and keep it (I was laid off and needed the cash). I received a 1099-R from Vanguard and a 1099-R from Fidelity. I entered both 1099-Rs into TurboTax and it’s counting both toward my adjusted gross income. Is that right? I ask because the money from Vanguard rolled over to Fidelity. I didn’t keep it. No taxes were withheld on the rollover from Vanguard to Fidelity for this reason. Taxes were withheld from the withdrawal because it was an early distribution. I’m under the age of 59 1/2 so I’m aware of a penalty I have to pay. I’m just hung up on the fact that Turbo Tax is counting both 1099-Rs toward my AGI.

Edit: Guys. I’m an idiot. I looked a little deeper into what Turbo Tax was counting toward my AGI and it’s not counting the Vanguard 1099-R.

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facelessposter t1_j6f0tpo wrote

Somewhere it should be asking you if anything was rolled over back into an IRA. That amount shouldn't be getting taxed, but it gets entered in a separate step in TT. Should see it wash out then.

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Fragrant-Anxiety6162 OP t1_j6f1gcv wrote

It’s asked me that but I didn’t roll it over to an IRA. It’s asked me if I rolled it to a Roth IRA also but that’s not what I did. I rolled it from a 401k to a 401k unless I’m not understanding something.

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debbiewith2 t1_j6f1zd2 wrote

There still should have been a code G that it was rolled to a qualified plan. You won’t get a 5498, since that’s only for IRAs. The first check was for sure made out to Fidelity?

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Fragrant-Anxiety6162 OP t1_j6f46sf wrote

Yep. Code G is on the Vanguard 1099-R and the check was made out to Fidelity.

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debbiewith2 t1_j6fa5uh wrote

If you put that in, that part shouldn’t be showing taxable.

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CapnLazerz t1_j6f1bfv wrote

You should only count the income from the withdrawal.

All I can think of is that you didn’t properly enter the Vanguard 1099; did you put the code indicating it was a rollover? Not sure how TurboTax works…

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75footubi t1_j6f1p2w wrote

Read the instructions on the 1099R again. Pretty certain that if no taxes were withheld, it's not something you need to report. So you should only be entering the Fidelity 1099, not the Vanguard one.

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