Roth IRA Distribution and partial Repayment

Forum|Forum|1 year ago
January 21, 2025
1 reply
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Hi,
I took a sum of $120,000 from My Roth IRA for a house (in 2024).

Within 30 days I returned back $20,000 since I didn't need all the amount.

I am over 59 1/2 so the distribution is tax free.

I received Form 1099-R from Vanguard showing the $120,000 that I took.

However, I didn't receive anything from them regarding the 20K I gave back. When I called Vanguard they said the 20K will show on Form 5498 that I will get in May.

I will file my tax return in February. Before I receive the 5498.

How will I report the $20,000 that I gave back without a supporting Form?

I called Vanguard and they said either from 5329 or 1040 as Indirect Rollover. But they seemed not sure and I am afraid to make a mistake.

Will TurboTax have an adequate mechanism for me to report both transaction (withdrawal and back) when for one of them I don't have a Form?
Thanks!

KeshaH

Level 11

You will need to enter this into TurboTax as an indirect rollover.

After entering your 1099-R and answering a few questions, you will come to a screen that says Tell us if you moved the money through a rollover or conversion.

Choose I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days) and click Continue

Choose No, I rolled over less than $120,000. Enter the amount that was put back into the account and click Continue.

TurboTax will then ask you additional questions to determine whether you'll need to include any of the remaining distribution in income or pay an early withdrawal penalty.