One possible explanation for what you are seeing relates to your distribution code. What code do you have in Box 7 on your 1099-R? It should be code 2 or code G. You are correct in that a direct rollover from one traditional IRA to another traditional IRA is a non-taxable event provided it is done within the specific time limits. Here are the steps to effect the traditional IRA rollover in TurboTax online.
- Start at Income & Expenses
- Scroll down to Retirement Plans and Social Security
- Continue through the application until you see a screen where you can select Moved retirement money.
- You will see a screen where you can import your 1099-R or manually enter the information. Select Change how I enter my form.
- Select Type it in myself.
- Select No when you get to the screen Do any of these situations apply to you?
- The next screen you should see will ask you whether you moved the money through a rollover or conversion
- The rest of the steps are self-explanatory.
Follow-up with us if you tried the above steps.
@fdlawlor
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