1099-R Indirect rollover and monthly payments

[dreinke]

I have entered the 1099-R which shows the indirect rollover amount and the monthly payments thereafter.  The original (indirect payment) was rolled over within the 60 days into another retirement account.  (check plus the taxes withheld.)

Husband received a monthly retirement check.

His employer put all of this on his 1099-R.

When I went through the steps in TT, I put in the 1099 - R.  I answered all of the questions noting that part of it was put into a retirement account.  I put in the taxable amount.  (his monthly payments)

My issue is on 1040 line 5b.  It shows Rollover and Taxable amount 0.  This is incorrect as I have specified the difference.

Is this an error in the software.  Did I miss something?

[dmertz]

I would expect that this Form 1099-R had the same amount in box 2a as is in box 1 (unless there is an amount in box 5) and should have code 1 2 or 7 in box 7.  The result that you are seeing seems to suggest that you told TurboTax that the entire gross amount was rolled over instead of saying that only part of the gross amount was rolled over.

[dreinke]

You are correct that box 1 and 2 are the same. As you walk through the questions, it asks if the amount was rolled into a retirement account. It asks if all or part was rolled over. Then you say how much (put in the indirect rollover amount)  next was determine how much is taxable. I put in the difference.  This is the amount that should appear on on the 1040.  I just get 0.

[dmertz]

"next was determine how much is taxable. I put in the difference."

It seems odd that TurboTax would be asking that.  Did you somehow indicate that the General Rule applied?  The General Rule only applies to nonqualified annuities and such annuities are not eligible for rollover.  For distributions from qualified plans where box 2b Taxable amount not determined is not marked, TurboTax would normally determine the taxable amount on its own.

Just to confirm, what is the code in box 7 of this From 1099-R?

Is the IRA/SEP/SIMPLE box marked?

Any other boxes marked?

[dreinke · Accepted solution]

Code 2. And no box marked.   If I separate the rollover amount and non rollover amount, then it is correct on my 1040. Problem is that they combine both indirect rollover and monthly pay on the same form.   TT help says to input rollover amount from year end investment statement to calculate the taxable amount. I have that entered that. Next screen is where you determine the taxable amount. Option 2 is enter taxable amount. I put it in but doesn't show on 1040 as the taxable portion. I am still leaning to a glitch in the software.