Indirect IRA rollover

Forum|Forum|6 years ago
February 13, 2020
2 replies
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When entering 1099R for IRA distribution, there is no question being asked relative to whether any portion of the distribution was an indirect rollover. I can shift from "step by step" to "forms" mode within turbotax, then go to the 1040 and do an overide at (4B) but its still not deducting the rollover portion from the taxable amount. I have even gone into forms and drilled down into the 1099R for the company which made the distribution and manually put in "the rolled over amount", but the system is just not doing the subtraction. Obviously I am doing something wrong, but I cannot see what it is that I've overlooked. Any thoughts ????

Best answer by dmertz

Presumably this distribution was not an RMD because RMDs are not eligible for rollover. If it was an RMD and was all RMD, TurboTax is correct not to ask What Did You Do With The Money From XYZ.

If this distribution was not all RMD, delete and reenter the Form 1099-R. I'm not aware of any other circumstances where TurboTax would not present the necessary question when entering a code 7 Form 1099-R with the IRA/SEP/SIMPLE box marked.

(Presumably you did not have the money transferred to charity, otherwise you would not have the money to roll over. Also, presumably you did not indicate that you inherited this IRA since the code 7 indicates that it is not an inherited IRA.)

JohnB5677

Level 15

When you go through the questions for the 1099-R there is a way to handle this. Once your on the screen where you entered the information for the 1099-R:

[Continue]
NO you did not inherit this IRA
When asked What did you do with the money?
Select you moved the money to another retirement account.
There will be a drop down
Select I did a combination of rolling over, converting, or cashing out money
Enter you rolled over amount and continue through the questions.

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Derrick6Author

Level 2

John

Problem is the window your referring to are not coming up. I have gone thru the entry process for the 1099R several times, hitting continue as you mentioned. Its asking if we used any distribution money for disaster relief, but does not pose the key questions you mentioned.

dmertz

Level 15

What is the code in box 7 of the Form 1099-R provided by the payer?

Is the IRA/SEP/SIMPLE box marked?

Is a nonzero amount shown in box 2a?

Is any amount shown in box 5?

Derrick6Author

Level 2

Box 7 is 7 which is correct. IRA, SEP box is checked.

The 1099R is correct. The issuer does not know there was an indirect rollover, so they are showing the entire amount as a regular distribution. The problem is finding where to enter the rollover amount so that it gets deducted on 1040 (line 4B). Nowhere in the 1099R entry process does is pose the question. Even if I go directly to the 1040 line 4b and do a manual over-ride its not reducing the line 4B total in the far right column.

dmertzAnswer

Level 15

Presumably this distribution was not an RMD because RMDs are not eligible for rollover. If it was an RMD and was all RMD, TurboTax is correct not to ask What Did You Do With The Money From XYZ.