Yes, this can be an indirect rollover if you put the money into your new 401(k) within 60 days of taking the second distribution as long as none of this distribution was an RMD, as @Opus17 noted. Typically, only one indirect rollover is allowed in a 365 day period. The IRS may grant some waivers in extreme cases to the 60-day rule. To enter the IRA distribution as a rollover, follow these steps:
- Search for 1099-R and select the Jump to link in the search results.
- Continue through the screens to import or enter your 1099-R form.
- When asked Tell us if you moved the money through a rollover or conversion select I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days) and Continue.
- On the next screen, Did you roll over all of this (Box 1) to another retirement account? answer Yes, I rolled over to an IRA or other retirement account (or returned it to the same account) and Continue. If you did not roll over the entire amount, select No and enter the amount you did deposit into your new 401(k).
As @Opus17 said, the entire Box 1 amount must be rolled over in order to avoid any taxes on the distribution. If your prior plan withheld some taxes, that amount would have to have also been deposited into the new 401(k). For example, if you took $30,000 out of your retirement account and they gave you $24,000 and withheld $6,000 for taxes, you would have to deposit $30,000 into the new 401(k) in order to answer Yes.
Since the distribution occurred in December, the taxes your plan administrator withheld will still count on your 2021 tax return.
