@hullian wrote:
I did a non-direct IRA rollover, taking a required minimum distribution last year, and then putting it back in the account prior to the August deadline. Usually, If the 1099-R has the "rollover" code on it (as happens when you do a direct rollover from one account to another, without getting your hands on the money), and you type that code into Turbotax, the program automatically puts the word "rollover" on line 4a of the Form 1040. However, in my case, I just answered the questions as asked and Turbotax told me congrats, you don't have to pay taxes on the distribution because it's a rollover. BUT - it did not put the word "rollover" on line 4a because I got the money first and then put it back later. Since I want to file electronically, I'm not sure how to comply with the IRS's request that the word Rollover show on line 4a. It would be nice if Turbotax would update the IRS's request and put it in automatically. Maybe they'll fix this by February 12, when filing begins.
There is nothing to fix since the bug reported above is for a direct: code G rollover, not an indirect rollover that works fine.
When entering it you MUST answer the RMD question checking the box that "NONE of this distribution was a RMD" because is was not - there was no 2020 RMD. Saying that it was a RMD will block the rollover.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
