tpctny
New Member

I defaulted on a 401k loan then I took advantage of the 60 day rollover rule and added the full amount to an IRA. How do I enter this into TurboTax?

The amount defaulted was rolled over into an IRA in 2016 within 60 days of default

Retirement tax questions

Explain what you mean?

If you default in a 401(k) loan they take the money out of your 401(k) account to pay off the loan.  You would not have the money to roll into anything.   Or do you mean that you rolled the *remainder* of the 401(k) after part of it was used to pay the loan?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
dmertz
Level 15

Retirement tax questions

A rollover is possible only if this was an offset distribution, reported with code 1, 2 or 7.  If this was instead a deemed distribution, reported with code L (perhaps with code 1 as well), this distribution was not eligible for rollover to an IRA.

What is the code in box 7 of the Form 1099-R provide by the 401(k) plan?
tpctny
New Member

Retirement tax questions

There is a 60 day rollover rule which I used to avoid being taxed on the defaulted amount. The 401k service provider sent a 1099-R and a form 5498, I'm trying to figure out how to enter both into turbotax
dmertz
Level 15

Retirement tax questions

What is the code in box 7 of the Form 1099-R provided by the 401(k) plan?
whr2nd
New Member

Retirement tax questions

I did this, within 60 days and repaid the exact amount; but TT is telling me that I have over contributed to the IRA and must withdraw to avoid penalties.  I did enter that it was a repayment.
TomD8
Level 15

Retirement tax questions

It's better if you enter your question as a new question, rather than as a comment on a year-old thread.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.