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Federal taxes taken out of a rollover
My husband had a rollover retirement account that he forgot about. Merrill Lynch closed the account and took out $10K+ of federal taxes and then sent us the remaining balance. When we received the check, we sent it back to Merrill Lynch and had them roll it over. Our 1099-R says 7 in box 7 that it was a regular distribution. But we did rollover the remaining funds. Do I change box 7 in Turbo Tax to G - direct rollover? That seems to work but will it trigger an audit since it doesn't match the 1099-R? Is there another way that I should be reporting this? Thank you!
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March 28, 2025
5:47 PM