Retirement tax questions

Yes, you must report the rollover on your tax return. The financial institution will send you a Form 1099-R which you will use to report the transaction. Box 7 of this form will have code G, Direct rollover of a distribution (other than a designated Roth account contribution) to a qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA.

If you do not receive the Form 1099-R by February 15, 2016, please see IRS Tax Topic 154 - Form W-2 and Form 1099-R (What to do if Incorrect or Not Received).

A note about indirect rollovers

IRA distributions are reported on Form 1099-R. If you had a direct rollover, the funds moved directly from one financial institution to another, so you never saw the money. As mentioned above, direct rollovers are indicated with either code G or H in Box 7 of the Form 1099-R. There is no special box 7 code for an indirect rollover (i.e., the code will indicate something else, such as “1” for an early distribution). Instead, enter the 1099-R that reports the distribution, then continue through the tax interview. TurboTax will ask what you did with the money, and you can indicate that you rolled it over (click the first attachment below to enlarge it for reference). Note that if you only rolled over part of the funds, you'll be prompted to enter the rollover amount (click the second attachment below for reference).

To enter your rollover:

• Open (continue) your return in TurboTax.
• In the TurboTax search box, enter 1099-R and press the Enter key, then click on the Jump to 1099-r link.
• On the Your 1099-R screen, check the Yes next to Did you have any of these types of income in 2015? then click Continue.
• Follow the prompts to either import or manually enter your 1099-R form and finish the interview, paying careful attention to the rollover questions if you made an indirect rollover.

For more information, see the FAQ below, What Is the Difference Between a Direct and an Indirect Rollover? https://ttlc.intuit.com/replies/3880707