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Retirement tax questions
Code G would have been correct if the funds were paid directly to the receiving retirement account by Fidelity, but that is not the case here. The fact that the distribution was paid to you and that taxes were withheld, shown in box 4 of this Form 1099-R, indicates that this was an indirect rollover, not a direct rollover that qualifies for the use of code G. The Form 1099-R provided by Fidelity is correct as is.
In 2020 TurboTax, delete the Form 1099-R, enter it exactly as received, indicate that none of it was RMD, then indicate that the money was moved to another retirement account or returned to the same account and that entire amount was rolled over. doing so will cause TurboTax to exclude the entire amount from Form 1040 line 4b.
‎February 13, 2021
10:38 AM