This is the problem. I entered the data exactly according to Macuser_22 shows in the screenshots. (Thank you Macuser_22 for your help.) The result is that TurboTax included the 401K withdrawal in our AGI. Now, if we file the taxes like this,it increased our AGI significantly and our SS checks will go down. I just don't know what to do, because we need the SS checks that we currently receive.
I think that I will enter in the 1099-R with the Code G and check off the IRA. That is exactly what happened in June 2020 within a 6-day period of time. On page 2 of the 1099-R it states as follows:
1. Box 7: Entry No. 7. "Normal Distribution." We did not take a normal distribution because the IRS on 3-27-2020 ruled that due to the Pandemic taxpayers did not need to take an RMD.
2. Box 7: Entry No. G. "Direct roller of a distrtibution to a qualified plan....or an IRA.
We withdrew the money and within 6 days we opened the IRA, but Fidelity paid the taxes before the rollover.
What do you think?
Take care & a million thanks again.
Donna
