@fanfare wrote:
If you use Code 7 but enter the Word "Rollover" on Form 1040,
that also will disagree with the Form 1099-R sent to the IRS by Fidelity.
Yet the IRS takes your word for it.
A code 7 rollover does not disagree with the 1099-R at all since a code 7 1099-R is permitted to be rolled over and the word rollover next to the 1040 line 4 or line 5 is required by the IRS. That is not disagreeing it is complying.
If there is box 4 withholding the 1099-R cannot be code G and the TurboTax form is sent to the IRS that will disagree with the form received from the financial institution guaranteeing a IRS audit letter.
**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.**
