Retirement tax questions
From what I am understanding from your question above, one 1099-R is for the distribution from your annuity (assuming it is a qualified annuity or retirement plan) to your financial advisor. It was not a direct rollover to an IRA because it did not go directly from a qualified retirement plan to another qualified retirement plan or IRA. This was classified as a "normal distribution" and most likely had a Code "7" in Box 7 of your Form 1099-R.
Your Financial Advisor deposited that distribution into an Traditional IRA. This would be a nontaxable rollover if it was deposited into the IRA within 60 days.
When entering this 1099-R into TurboTax you will see this prompt.
You should see a screen like this:
The second 1099-R, is for a distribution to you from the IRA? That would be taxable income to you. You would enter that Form 1099-R into TurboTax as it is shown.
To view your Form 1040 prior to e-filing to check these entries you can:
In order to preview your return, please follow the instructions below:
- Open your return.
- Click on Tax Tools.
- Click on Tools.
- Click on View Tax Summary under Other helpful links.
- Click on Preview my 1040.
This should show you that you were not taxed for both distributions. Please feel free to contact TurboTax if you have additional questions.
Click here for information on Turbo Tax Support.
