dmertz
Level 15

Retirement tax questions

forrest4, it seems that you are saying that you rolled an IRA distribution over to the same IRA account from which the distribution was taken.

 

Since the distribution will occur in 2020, presumably the Form 1099-R will have code 1 or code 7, depending on your age, and will have the IRA/SEP/SIMPLE box marked.  When you enter this Form 1099-R into TurboTax, TurboTax will ask what you did with the money.  You'll indicate that you moved the money to another retirement account (or returned it to the same account) and that you rolled over all of the money.  TurboTax will include the entire amount on Form 1040 line 4a but will exclude the amount rolled over from the taxable amount that would otherwise be reported on line 4b.  TurboTax will also place the word ROLLOVER next to line 4b.

 

Be sure to note that you are only permitted one such rollover in a 12-month period; rolling over more than one distribution made in a 12-month period would create an excess contribution.  Also be aware that if the IRA is an inherited IRA, a non-spouse beneficiary is not permitted to roll the money back into the account.  You are also not permitted to roll over any portion of the distribution that is an RMD.

 

There is no need to wait for any 2020 Form 5498.  You'll already know how much you rolled over, so you'll already have the information needed to prepare your 2020 tax return.  With regard to rollovers, box 2 of Form 5498 is mainly to inform the IRS of the rollover independent of the reporting on your tax return.

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