@MI46 wrote:
My husband took a loan against his IRA in December 2021 of $200,000 and also took out his RMD of $20,000.
The loan was paid back within 60 days, on January 28, 2022, and is not taxable. The 1099R shows the total amount of $220,000 as gross and taxable (1 and 2a) and 7 in Box 7. Turbotax Deluxe asks how much was taxable and he entered $20,000, but then it asks what is in Box 7 and when he entered 7, it made all of the $220,000 taxable. We want to file electronically, but this will need a written explanation. The payer will not issue a new, or separate, 1099R.
How do we manage this?
When you enter any 1099-R, you should see a screen for "what did you do with the money," and the choices are "Rolled over all to another account" and "something else." When you click "something else," a further question opens to ask for details, and one of the choices is "rolled over part." Indicate you rolled $200,000 over into a qualified account (the same account, in your case). The remaining $20K will be taxed.
(What you did is considered a rollover, even though it was rolled back into the same account.)
