Retirement tax questions
The amount you rolled over within the 60-day period is not taxable.
Under the 60-day rule, an IRA account owner may take money out as long as it is returned in full within a 60-day period, beginning from the original withdrawal date and it is not taxable. However, It must be reported on your tax return.
To enter your form 1099-R:
- In TurboTax, open your tax return
- Click on Federal in the left-hand column, then on Wages & Income on top of the screen
- Scroll down to All Income, locate the section Retirement Plans and Social Security and click on Show more
- Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
After entering your form 1099-R, click Continue until you reach the screen Did [your name] repay any of this distribution?. Check the button which corresponds to your situation then click Continue and follow the interview. The amount that you enter as a repayment will be excluded from taxation.
It will look like this:
To report a 60 day rollover on your taxes, your plan's administrator will send you a 1099-R. In box 13 of the 1099-R is the date of payment or when the funds were withdraw to determine that it was repaid within 60 days.
Your Form 1099-R should be entered as it is shown, unless you believe it to be incorrect. If you believe your Form 1099-R is incorrect you should contact your financial institution that issued your Form 1099-R to clarify that it is correct.
A RMD (Required Minimum Distribution) is the minimum amount you must withdraw from your account each year. You generally have to start taking withdrawals from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account when you reach age 72 (70 ½ if you reach 70 ½ before January 1, 2020). Roth IRAs do not require withdrawals until after the death of the owner. , and would be reported as a distribution code of 7 in Box 7 of Form 1099-R and would be taxable.
Click here for information on entering your Form 1099-R in TurboTax.
