I rolled a previous employers 401k into an IRA in January 2018 but took an early $500 distribution($400 net). Do I need to claim it on 2017 taxes?

Turbo tax program is prompting me to enter this info. Is this because I am contributing post tax dollars to the IRA? Can I wait until 2018 taxes to claim this?

Retirement tax questions

This goes on the 2018 return.

You will get a 1099R at end of 2018 and will enter this rollover on the 2018 return.  

Note:  A rollover is not a contribution.  

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Retirement tax questions

yes realizing the difference from rollover to contribution. I already have contributed $100 post tax dollars and looking to put more in before april 17 when I amend my return.The end result im trying to achieve is not having to mail a check to them. Already have return. Just after filing a $700 w2 of my wifes arrived. Trying to offset the fact they want $122 for it. Id rather put cash in the IRA.

Retirement tax questions

turbo tax prompts me for info about distributions from 2015 thru 2018. is this because the 60 day rule for replacing distributions?

Retirement tax questions

oh and already have 1099r for 2018

Retirement tax questions

So in 2018, you took money out of 401K to roll to an IRA, and they withheld $100 taxes correct?  And are also putting money in a Traditional IRA for the tax year 2017, is that correct?
dmertz
Level 15

Retirement tax questions

This must be reported on the tax return for the year in which the distribution occurred  The fact that you already have the Form 1099-R suggests that this distribution might have occurred in 2017 and would be reportable on your 2017 tax return even if the rollover deposit was not made until 2018 (within 60 days).  Look at the year that is on the Form 1099-R to see which year's tax return needs to show this.

Retirement tax questions

Yes. to all questions. let me explain. Filed taxes already received refund. Wife received a W2 afterwards. Need to amend so enter the w2 and the $700 of income equates to owing $122 more in tax. So I have added $100 post tax dollars to my IRA in the interem. I enter this into Turbotax and it brings down the damage to something like $72. I want to contribute more so that I dont mail IRS a check. But for some reason the program asks about distributions from year 2015 thru year 2018 and when I enter the 2018 info the refund meter goes up to like $300 or close to it. Do I need to declare this now or take the hit next year when my payroll withholdings will likely cover the damage

Retirement tax questions

2017 or 2018 1099R?

Retirement tax questions

So it is dated 2018. 20% distribution $500 and $100 fed tax W/H net $400 the other 80% went into a qualified IRA.

Retirement tax questions

Believe me I was confused by the prompting for the info.

Retirement tax questions

Ok just as dmertz said in above comment, "This must be reported on the tax return for the year in which the distribution occurred"
The reason you are getting the questions about distributions is the Saver's Credit.  If you took money out, in prior years it can disqualify you.  
Getting back to the main area, however, the date of the 1099R does not matter, if it is a 2018 1099R report on 2018 return, if it is a 2017 1099R report on the 2017 return.

Retirement tax questions

Then this is an error in their program. That should be fixed unless it catches it on final review. Didnt get that far was stopped in my tracks as I reluctantly entered the info and watched my owe meter go in the wrong direction. So I should just go delete this info  and figure out how much more to contribute to IRA  to bring down my Debt to $0? Correct?

Retirement tax questions

Ok, just make sure any amounts rolled over to IRA from the 401K are NOT counted as an IRA contribution for 2017 tax year, as they are not a contribution.  
If the money from the 401K was received in 2018, then report that in 2018, (if 2017, report in 2017).
dmertz
Level 15

Retirement tax questions

patrykgsdad, you haven't described anything that suggests an error in the program.  When I implied that a 2018 Form 1099-R gets reported on your 2018 tax return, I was referring to entering the Form 1099-R itself.  For the purpose of the Retirement Savings Contributions Credit, only the $100 withheld for taxes needs to be entered as an amount distributed that affects your 2017 Retirement Savings Contributions Credit since the other $400 was rolled over.  Had you substituted $100 from another source to complete the rollover of the entire $500 within 60 days of the distribution date, none of this distribution from the 401(k) would be affecting your 2017 Retirement Savings Contributions Credit.  Note that this $100 distribution not rolled over will affect your Retirement Savings Contributions Credit for several years to come.  The $100 not rolled over reduces by $100 any new retirement contributions considered for the credit.