How can I tell if I am paying tax on my IRA contribution?

[Fru-Gal]

I think my post title is fairly clear… I am trying to figure out if I am paying tax once or twice (or zero times ha ha) on my husband’s rollover contribution from a 401(k) to an IRA. We make too much to deduct IRA contributions. But not certain if that also applies to a rollover.

[seattlecyclone]

Rollover from pre-tax to pre-tax should not trigger any tax, regardless of your income level.

[Fru-Gal]

Great, that’s what I figured! But then my question is on what form would I be able to tell that we are not paying tax. Because once I put in the two forms (1099-R, showing rollover, and 5498, showing same rollover contribution), my tax owed went up in Turbo tax.

[MDM]

Great, that’s what I figured! But then my question is on what form would I be able to tell that we are not paying tax. Because once I put in the two forms (1099-R, showing rollover, and 5498, showing same rollover contribution), my tax owed went up in Turbo tax.

According to this Intuit page, You won't find [Form 5498] in TurboTax, nor do you file it with your tax return.

And that's correct - you shouldn't need to do anything with 5498 for a rollover. 

What code is in Box 7 of the 1099-R?

[seattlecyclone]

Take a look at TurboTax's output. What probably is there right now is the amount of your rollover on both line 4c and line 4d of your 1040. You're taxed on the amount on line 4d. What should be there is the amount of your rollover on line 4c of your 1040, zero on line 4d, and "rollover" written next to line 4d. I don't know TurboTax, but they surely have a way to for you to say that the amount from your 1099-R is a rollover. Once you do that you should be all set.

[Fru-Gal]

It’s coded correctly with G which means direct rollover. I will try the other suggestions, thank you so much! TurboTax is on my last nerve since everything that I need to do they tell me I have to spend another $90 (investments) or $100 (Schedule C Deductions) LOL.

[MDM]

TurboTax is on my last nerve since everything that I need to do they tell me I have to spend another $90 (investments) or $100 (Schedule C Deductions) LOL.

Are you using TT Online, or are you using the CD/Download version?  For the same nominal version (e.g., Deluxe, Premier) the CD/Download program has (at least had in the past) more capabilities than the Online program.

[Fru-Gal]

Cool, I will look into that; I am using online.