I had a direct rollover of a 403b into a traditional IRA . This event is appearing on my taxes as a contribution instead of a rollover.

Forum|Forum|4 years ago
April 4, 2022
4 replies
3 views

Any advice on this dilemma would be appreciated!

I had a direct rollover from a 403b into a traditional IRA. It is appearing on my taxes as a contribution to the IRA instead of a rollover. The maximum contribution is $7000 (I'm over age 50) and my rollover was a little bit over this and I'm being assessed 6% penalty on the excess. Can anyone tell me how to correct this issue?

Thanks much!

TurboTax Home & Biz Windows

Best answer by dmertz

In addition to correctly entering the Form 1099-R, it appears that you mistakenly entered this amount under Deductions & Credits as a regular IRA contribution. Go back and remove that mistaken entry.

ColeenD3

Level 15

Did you enter the 1099-R and go through the interview process? You will encounter a screen that allows you to show the rollover.

carolynburns3Author

Level 3

Thank you for your reply. Yes, I did enter the 1099R information, but the interview questions don't appear. Any way to correct this?

ColeenD3

Level 15

Did you enter the 1099-R and go through the interview process? You will encounter a screen that allows you to show the rollover.

bosso3

Level 7

I suggest reviewing your entries for the form you received for this event, 1099-R, I presume.

In particular check to ensure the entry for Box 7, distribution code is correct.

For code meanings see https://www.hrblock.com/tax-center/irs/forms/reporting-form-1099-r-amounts-as-income/

To find the 1099-R :

Federal Return > Wages and income > "I'll choose what I want to work on" (button) > Scroll down to "Retirement Plans and Social Security" > Find the line for 10099-R > Click the "Update" or "Start" button on the right side of that line > Follow the conversation and enter the required data.

If the event is as you describe, Box 7, distribution code should be code = G. If not, contact your financial institution to determine why.

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carolynburns3Author

Level 3

Yes, the distribution code is G on my 1099-R.

Any other thoughts??

dmertzAnswer

Level 15

In addition to correctly entering the Form 1099-R, it appears that you mistakenly entered this amount under Deductions & Credits as a regular IRA contribution. Go back and remove that mistaken entry.