MinhT1
Employee Tax Expert

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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