1099-R gross distribution vs taxable amount

[melnelis]

Hi,

My hubs (63 yrs-old) withdrew money from his 401K and put the majority of it back, through an IRA rollover, within 30 days. We received two 1099-Rs, one for the rollover and the second for the withdrawal. Shouldn't (box 2) the taxable amount of the withdrawal be reduced by the amount he put back, or rolled over? Both the gross distribution (box 1) and the taxable amount (box 2) are for the same amount, which is the total amount he withdrew. This seems wrong? 

Please help!

Thanks so much!

[MinhT1]

He should have received only one form 1099-R for the withdrawal. A form 1099-R is not issued when he put back money for the rollover.

It is normal that the amount in box 2 is equal to box 1, as the custodian did not know whether your husband is going to rollover part of the amount.

The rollover must be entered in TurboTax so that the amount can be exempted from taxation.

In TurboTax Online, enter your form 1099-R by following these steps:

1. Open your tax return
2. Click on Federal in the left-hand column, then on Wages & Income
3. Navigate to the list of income categories
4. Locate the section Retirement Plans and Social Security and click on the arrow on the right
5. Click Start next to IRAs, 401(k), Pension Plan Withdrawals (1099-R).
6. Enter your form 1099-R and follow the interview
7. When you arrive to the page Tell us if you moved the money through a rollover or conversion, click on the radio button I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)
8. Enter the amount of the rollover.