Retirement tax questions

You should enter all of your Forms 1099-R into TurboTax exactly as shown.  This is very important to do this.

According to the IRS you cannot directly rollover your Required Minimum Distribution (RMD) from your IRA or qualified retirement plan directly to a ROTH IRA.  I am assuming that you took the  RMD distribution and then invested it into a ROTH IRA.

If you make a mistake and roll over or convert your RMD, it will be treated as an excess contribution, and you'll pay a penalty of 6% per year for each year it remains in the Roth or traditional IRA. You have until October 15 of the year after the excess contribution to correct it.

Click here for Publication 590 IRA's.

You must include in your gross income distributions from a traditional IRA that you would have had to include in income if you hadn’t converted them into a Roth IRA. These amounts are normally included in income on your return for the year that you converted them from a traditional IRA to a Roth IRA. 

This is why you need to enter your Form 1099-R as it is reported to you. The items in Box 2 a & b and Box 7 of your Form 1099-R will determine the taxability of your distribution.  Tax treatment of pension distributions can get tricky especially if you are mixing pre-tax contributions (to IRA's or 401(k)'s and after-tax contributions (like Roth IRS's).  

Be sure to answer all subsequent prompts properly after entering your Form 1099-R.

If you believe for any reason that your Form 1099-R is not correct you should contact your Financial Institution that issued it for clarification.
 

Here's how to enter your 1099-R:

1. Open (continue) your return if you don't already have it open
2. Search for 1099-R and select the Jump to link in the search results
3. Answer Yes on the Did you get a 1099-R? screen
   • If you land on the Review your 1099-R info screen instead, select Add Another 1099-R
4. Answer any questions until you get to the import screen. You'll be prompted to enter your financial institution account info and TurboTax will directly import your forms
   • If you prefer to type it in yourself, select Change how I enter my form and continue through

 Click here for the instructions for Forms 1099-R.

Click here for information regarding Required Minimum Distributions (RMD's).

Click here for where to enter your Form 1099-R

If you would like to preview your Form 1040 to check how your pension distribution was reported:

1. Login to TurboTax Online (https://turbotax.intuit.com/) 

2. Click on "Pick up where I left off" 

3. Select "Tax Tools" from the menu on the left side of the screen 

4. Next select "Tools" from the drop-down menu on the left side of the screen 

5. Then click "View Tax Summary" from the pop-up menu 

6. Lastly, click on "Preview My 1040" from the menu on the left side of the screen.