MinhT1
Expert Alumni

Retirement tax questions

The TurboTax program is correct. To be completely tax free, the indirect rollover must be for the gross amount.

 

As the indirect rollover was $180 short, the IRS considers that you have an early withdrawal of $180. This $180 is taxable and subject to the 10% penalty. Your $180 tax withheld is not lost. It counts as a tax credit toward your tax liability.

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