- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
You need to find out why this distribution was made because it might not be eligible for rollover. If the distribution is eligible for rollover, the plan is required to have given you an explanation of your rollover options at least 30 days prior to making the distribution (unless you waived that requirement) and is required to have withheld at least 20% of the distribution for federal taxes. If neither of these was done, it's possible that the distribution is a corrective distribution due to the plan having failed ADP or ACP testing, in which case the distribution is not eligible for rollover.
Indirect rollovers are reported no differently on your tax return than are direct rollovers, although the questions that TurboTax asks in each case are slightly different based on the code in box 7 of the Form 1099-R that you will be receiving. If the code in box 7 indicates that the distribution is a corrective distribution that is not eligible for rollover, TurboTax will prevent you from reporting the distribution as having been rolled over.